Core Insights - Apple's iPhone exports from India to the US increased by 76% in April, reaching approximately 3 million units, as the company seeks to avoid tariffs on Chinese imports [1][2] - In contrast, shipments from China fell by about 76% to just 900,000 units [2] - The shift to India has drawn criticism from both the US and Chinese governments, with President Trump insisting that iPhones sold in the US should be manufactured domestically [3][9] Manufacturing and Supply Chain - Apple's suppliers in India face challenges accessing high-tech machinery and talent from China, which may hinder production capabilities [4] - A complete transition to US manufacturing is deemed unlikely, with estimates suggesting it could take 5 to 10 years and significantly increase iPhone prices to around $3,500 [4][5] - Foxconn, a key Apple supplier, has announced a $1.5 billion investment in an Indian facility, indicating a commitment to expanding production in the region [4] Market Demand and Capacity - The US demand for iPhones is estimated at 20 million units per quarter, while India's manufacturing capacity is not expected to meet this demand until 2026 [8][11] - Despite growth in India, momentum is expected to slow down for the remainder of the year [5] - Apple's iPhones produced in India still face a baseline tariff rate of 10% imposed by the US [11]