In a dramatic twist to global supply chain planning, Apple is reportedly reviewing its aggressive India scale-up strategy for iPhones destined for the U.S. market, following a volatile shift in American trade policy. The move comes on the heels of a temporary tariff truce between the U.S. and China and direct objections from former President Donald Trump against outsourcing production to India.
Until recently, India had emerged as a cornerstone of Apple’s “China+1” diversification plan, bolstered by the Indian government’s production-linked incentive (PLI) scheme. Apple CEO Tim Cook had even stated that for the June quarter, the majority of iPhones sold in the U.S. would have “India as their country of origin.” However, this trajectory is now under reassessment.
The catalyst? Trump’s stark directive during his Doha visit, where he publicly asked Cook to refrain from sourcing iPhones from India for the U.S. market. This contradicts Apple’s earlier commitment to ramp up American manufacturing through a $500 billion investment plan, including a new advanced facility in Houston.
While the broader India manufacturing roadmap remains intact, Apple is taking a cautious pause on India-specific production meant solely for U.S. supply. Sources indicate this is a tactical breather amid shifting geopolitical winds and tariff uncertainties. “We await clarity,” said a source close to the matter. “There have been too many sudden changes in U.S. tariff policy in recent days.”
Despite this reevaluation, Indian officials remain optimistic. Government sources confirmed that Apple has reassured them of its commitment to India through manufacturing partners Foxconn and Tata, emphasizing that only the U.S.-bound pipeline is being reassessed—not the entire investment agenda.
Industry experts have responded with pragmatic calm. Rajoo Goel, Secretary General of ELCINA, noted that India must maintain its long-term vision and deepen its electronics value chain. “This might slow things down a bit, but it’s not a derailment,” he said. “India is on a strong footing. These are commercial decisions and the fundamentals remain robust.”
Indeed, India’s role in Apple’s global supply chain has been steadily increasing, with iPhone exports from India reaching record highs in recent quarters. Even amid political rhetoric, Apple’s interest in building a resilient, diversified manufacturing base outside China aligns with long-term global risk mitigation.
For now, the message is one of patience. Apple is threading a delicate needle between maintaining goodwill in Washington and anchoring its production in Asia’s most promising manufacturing hub. In this high-stakes geopolitical chess game, India remains a critical piece on Apple’s board—just not the only one.
