New Delhi: Apple will source most of the iPhones it aims to sell in the US this quarter from India, chief executive Tim Cook said Friday, underscoring the company's strong performance in the country which is rapidly emerging as its second manufacturing hub, after China.
Cook, however, said China would continue to dominate sales of Apple products outside the US, even as he stressed on the need to diversify supply chains, especially when faced with crises such as the ongoing trade war between Washington and Beijing.
On sales in the Indian market, the CEO said Apple set a quarterly record but did not elaborate.
Speaking to reporters and at a post-earnings call, Cook said more than half of iPhones sold in the US in the March quarter originated from India.
Also Read: Apple’s ‘Make in India’ dream meets tariff reality under Trump’s trade salvo
The company has shuffled its supply chain-which remains heavily reliant on China-to control cost increases due to the high tariffs imposed by the Trump administration.
ET reported on April 7 that iPhones worth ₹48,000 crore were exported from India in the March quarter, a sharp rise from ₹28,500 crore a year ago.
Cook did not disclose the production mix of iPhones sold in the US beyond June, adding that it is difficult to predict that far ahead due to the prevailing uncertainty on whether the current tariffs will sustain. He, however, said that Apple has learnt the risks of having its supply chain in one location-China- and its moves towards diversifying will continue in the future.
"The existing tariffs that apply to Apple today are based on the product's country of origin... We do expect the majority of iPhones sold in the US will have India as their country of origin..."
Apple Global Revenue Up 5% to $95.4B
"(We expect) Vietnam to be the country of origin for almost all iPad, Mac, Apple Watch, and AirPods products sold in the US," said Cook. "China would continue to be the country of origin for the vast majority of total product sales outside the US".
Apple said it faced limited impact from the new tariffs in March, but estimated a $900-million cost increase in the June quarter, assuming the current tariffs stay unchanged and fresh ones are not added.
To be sure, the vast majority of Apple products such as iPhone, Mac, Apple Watch, and Vision Pro are currently not subject to global reciprocal tariffs announced by the US government in April.
Apple reported a 5% on-year increase in revenue in the March quarter at $95.4 billion, fuelled by strong sales across all product categories. Net profit grew 5% to $24.8 billion.
For the June quarter, Apple said the majority of its tariff exposure relates to the 20% tariff on China announced in February.
There was an additional 125% tariff on imports of some of its after-sales products and accessories sourced from China, bringing the total tariff on some products to 145%, Cook explained.
According to Apple, the company has not experienced any quantifiable impact from the higher tariffs on its product demand so far. It has however revised its growth outlook for the coming quarter-expecting a low to mid-single digit sales increase year-on-year.
Cook said the company is in talks with the US government on tariffs, adding that it will continue to engage on the price impact of its products due to the higher rates, though it had nothing to announce on price impact presently.
"The tariff jolt has rekindled the importance of supply chain diversification, especially in India...," said Tarun Pathak, research director at Counterpoint Research.
The US accounted for 98% of iPhones exported from India in March, totalling around 3.1 million units, according to S&P Global Market Intelligence.
Media reports said earlier that Apple is planning to source all iPhones sold in the US from India starting 2026, as its contract manufacturers in the country - Foxconn, Tata Electronics and Pegatron (also owned by the Tatas)-ramp up capacity by opening new facilities.
"Apple has been doing a lot of groundwork in India which has helped it successfully manage some of the US iPhone demand from its India production facilities. In terms of capacity, India has enough to potentially meet all US iPhone demand in future, but the ecosystem needs to be ramped up," said Pathak.
Counterpoint estimates Made-in-India iPhones to make up 25-30% of global iPhone shipments in 2025, up from 18% in 2024.
Cook, however, said China would continue to dominate sales of Apple products outside the US, even as he stressed on the need to diversify supply chains, especially when faced with crises such as the ongoing trade war between Washington and Beijing.
On sales in the Indian market, the CEO said Apple set a quarterly record but did not elaborate.
Speaking to reporters and at a post-earnings call, Cook said more than half of iPhones sold in the US in the March quarter originated from India.
Also Read: Apple’s ‘Make in India’ dream meets tariff reality under Trump’s trade salvo
The company has shuffled its supply chain-which remains heavily reliant on China-to control cost increases due to the high tariffs imposed by the Trump administration.
ET reported on April 7 that iPhones worth ₹48,000 crore were exported from India in the March quarter, a sharp rise from ₹28,500 crore a year ago.
Cook did not disclose the production mix of iPhones sold in the US beyond June, adding that it is difficult to predict that far ahead due to the prevailing uncertainty on whether the current tariffs will sustain. He, however, said that Apple has learnt the risks of having its supply chain in one location-China- and its moves towards diversifying will continue in the future.
"The existing tariffs that apply to Apple today are based on the product's country of origin... We do expect the majority of iPhones sold in the US will have India as their country of origin..."
Apple Global Revenue Up 5% to $95.4B
"(We expect) Vietnam to be the country of origin for almost all iPad, Mac, Apple Watch, and AirPods products sold in the US," said Cook. "China would continue to be the country of origin for the vast majority of total product sales outside the US".
Apple said it faced limited impact from the new tariffs in March, but estimated a $900-million cost increase in the June quarter, assuming the current tariffs stay unchanged and fresh ones are not added.
To be sure, the vast majority of Apple products such as iPhone, Mac, Apple Watch, and Vision Pro are currently not subject to global reciprocal tariffs announced by the US government in April.
Apple reported a 5% on-year increase in revenue in the March quarter at $95.4 billion, fuelled by strong sales across all product categories. Net profit grew 5% to $24.8 billion.
For the June quarter, Apple said the majority of its tariff exposure relates to the 20% tariff on China announced in February.
There was an additional 125% tariff on imports of some of its after-sales products and accessories sourced from China, bringing the total tariff on some products to 145%, Cook explained.
According to Apple, the company has not experienced any quantifiable impact from the higher tariffs on its product demand so far. It has however revised its growth outlook for the coming quarter-expecting a low to mid-single digit sales increase year-on-year.
Cook said the company is in talks with the US government on tariffs, adding that it will continue to engage on the price impact of its products due to the higher rates, though it had nothing to announce on price impact presently.
"The tariff jolt has rekindled the importance of supply chain diversification, especially in India...," said Tarun Pathak, research director at Counterpoint Research.
The US accounted for 98% of iPhones exported from India in March, totalling around 3.1 million units, according to S&P Global Market Intelligence.
Media reports said earlier that Apple is planning to source all iPhones sold in the US from India starting 2026, as its contract manufacturers in the country - Foxconn, Tata Electronics and Pegatron (also owned by the Tatas)-ramp up capacity by opening new facilities.
"Apple has been doing a lot of groundwork in India which has helped it successfully manage some of the US iPhone demand from its India production facilities. In terms of capacity, India has enough to potentially meet all US iPhone demand in future, but the ecosystem needs to be ramped up," said Pathak.
Counterpoint estimates Made-in-India iPhones to make up 25-30% of global iPhone shipments in 2025, up from 18% in 2024.
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