Apple has started to significantly alter its global supply chain operations because of the disruption caused by the ongoing US-Israel-Iran conflict, which has affected the normal transit routes in the Gulf region, as per The Moneycontrol report.
The company is redirecting India-manufactured iPhones away from the Middle Eastern hub, particularly Dubai, due to increased geopolitical tensions and logistics complications.
The redirection of iPhone shipments has sent ripples through India's electronics manufacturing ecosystem. Key suppliers such as Foxconn Technology Group and Tata Electronics have already started feeling the impact.
Other companies, like Dixon Technologies and Samsung India, which engage in smartphone manufacturing for various brands, might also be affected by these changes.
According to data accessed by Moneycontrol, India exported approximately $4.2 billion worth of smartphones to the UAE in 2025, with iPhones accounting for around $3.6 billion.
The UAE has traditionally served as an important transit hub, handling about 14% of India's total mobile exports in 2025, mirroring figures from 2024.
As tensions rise in the region, critical Gulf trade routes are being compromised, threatening both transit volumes and regional demand, which is significant for India.
A prolonged conflict may disrupt not only logistics but also imports and consumer demand across the Gulf. Alternative routes and hubs are reportedly being activated to minimise these disruptions.
Apple, well aware of the volatile situation, has begun collaborating with logistics providers to reroute shipments, even if it incurs higher costs.
With the Gulf conflict escalating, central hubs like Dubai are being utilised less. Air cargo operators are already adjusting flight paths to accommodate changes.
The Middle East, particularly Dubai, serves as a global transit hub for smartphone logistics. Disruptions in these areas have forced a redirection via longer corridors passing through Central Asia and East Africa, thus increasing flight times and operating costs.
The situation is further exacerbated by rising oil prices, primarily due to tensions around the Strait of Hormuz, leading to increased aviation fuel costs.
Read More: Apple’s iPhone Production in India May Hit $70 Billion Over 5 Years Amid Export Growth: Report!
Apple's strategic decision to redirect India-made iPhones to alternative hubs reflects broader shifts in response to geopolitical tensions. This move is likely to influence its key suppliers and the Indian electronics manufacturing sector, necessitating adjustments in logistics and export strategies.
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Published on: Mar 19, 2026, 8:43 AM IST
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