Apple Relocates iPhone Manufacturing for US Market to India, Says Tim Cook

Apple CEO Tim Cook has confirmed that the tech giant is now sourcing half of its iPhones for the US market from India, citing lower tariffs compared to China as the driving reason behind this strategic shift.

Why Apple Is Shifting iPhone Production from China to India

Tim Cook explained that Apple is producing its other major products for the US market in Vietnam. However, the majority of Apple products for global markets continue to be manufactured in China.

Cook also highlighted that India will now be the ‘country of origin’ for most iPhones sold in the US, marking a significant shift in Apple’s global supply chain strategy. This move comes as part of Apple’s attempt to reduce dependence on Chinese manufacturing, where tariff levels are significantly higher compared to India and Vietnam, both of which currently face just 10% tariffs.

Tim Cook Responds to High Tariffs Amid Global Trade Shifts

Tim Cook’s announcement follows recent decisions by US President Donald Trump, who declared retaliatory tariffs on over 100 countries, including India and China. Cook noted that the impact on Apple during the March quarter was “limited”, as the company had already begun optimizing its supply chain in anticipation of these geopolitical developments.

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Apple Q2 Results: Revenue Climbs to $95.4 Billion, iPhone Leads the Way

For the March quarter, Apple reported total revenue of $95.4 billion, an increase from $90.75 billion in the same period a year earlier. Notably, iPhone revenue surged to $46.84 billion, while Mac revenue stood at $7.95 billion, and iPad revenue totaled $6.4 billion.

Looking ahead to the quarter through June, Cook projects that Apple’s total revenue will grow in the “low to mid-single digits” on a year-over-year basis. However, he admitted that revenue projections beyond June remain uncertain, largely due to the evolving tariff landscape.

Trump’s Reciprocal Tariffs and Their Impact on Apple’s Supply Chain

On April 2, President Trump announced reciprocal tariffs on more than 100 countries. A 90-day pause was later declared on April 9 as multiple nations, including India, entered negotiations with the US. However, China was excluded from this list, and has since retaliated with its own set of tariffs.

Currently, the US has imposed 145% tariffs on Chinese goods, while China has retaliated with 125% tariffs on American products. These developments have significantly influenced Apple’s move to diversify its manufacturing bases.