Apple CEO Tim Cook confirms majority of iPhones sold in the US will come from India

By Admin

02 May, 2025

In a strategic shift reshaping global manufacturing, Apple CEO Tim Cook has confirmed that India will be the country of origin for a majority of iPhones sold in the US starting from the June quarter of 2025. The announcement came during Apple’s Q2 FY25 earnings call, signaling a major pivot in the tech giant’s supply chain strategy — one that reduces reliance on China and embraces India as a growing production powerhouse.

Supply Chain Realignment Amid Tariff Tensions

Apple’s move comes amid rising trade tensions and tariff impositions under the Trump administration’s reciprocal trade policy. Chinese imports are now facing a hefty 145% tariff, pushing companies like Apple to diversify their supply chains. By contrast, goods from India and Vietnam face significantly lower tariffs — around 10% — making them more financially viable alternatives.

“We do expect the majority of iPhones sold in the US will have India as their country of origin,” said Tim Cook, highlighting India’s rising stature in Apple’s global operations. However, Cook cautioned that beyond June, the scenario remains unpredictable, noting that “it’s very difficult to predict beyond June,” due to ongoing volatility in the tariff landscape.

India Takes the iPhone, Vietnam Covers the Rest

While India focuses on iPhone production, Apple has designated Vietnam to handle the bulk of manufacturing for iPads, Macs, Apple Watches, and AirPods destined for the US market. This strategic distribution helps Apple maintain cost efficiency and adaptability in response to geopolitical shifts.

Apple is not taking chances with the uncertainty. The company has budgeted approximately $900 million in additional costs for the current quarter, primarily due to tariffs. Interestingly, analysts had anticipated an even larger financial impact, but Apple’s proactive inventory stockpiling and calculated risk absorption helped keep the figure contained.

No Early Buying Surge — Yet

Despite the looming price pressures, Tim Cook noted that there’s “no obvious evidence” of early buying behavior from consumers trying to dodge potential price hikes. AppleCare services and accessories sourced from China will still face the full 145% tariff, a cost Apple is currently absorbing.

Apple’s Revenues Reflect Resilience

Apple reported $95.4 billion in revenue for the quarter ending March 2025 — up from $90.75 billion a year ago. This growth, amid global supply chain recalibrations and rising tariffs, underscores the company's operational agility and financial resilience.

India: From Market to Manufacturing Giant

What once was just a promising market is now a cornerstone of Apple’s global strategy. With India becoming a major production hub, the country is no longer just selling iPhones — it’s making them for the world. As Apple leans into Indian manufacturing, this marks a pivotal step in India's evolution into a key node in the global tech supply chain.

Whether this shift is temporary or permanent remains to be seen, but for now, India is at the heart of Apple’s plan to weather the global trade storm.