Apple CEO Tim Cook has confirmed that the majority of iPhones sold in the United States during the June quarter will be manufactured in India, marking a major shift in Apple’s global supply chain strategy amid rising US tariffs on Chinese imports.
Speaking after Apple’s Q2 FY25 earnings, Cook said the company is increasingly relying on India as a key production hub. “We do expect the majority of iPhones sold in the US will have India as their country of origin,” he told CNBC, though he noted that predicting beyond June remains uncertain due to the evolving trade landscape.
The move comes as Apple works to sidestep the steep 145% US tariff on Chinese-made electronics, compared to just 10% for goods from countries like India and Vietnam. Vietnam is set to produce most of the iPads, Macs, Apple Watches, and AirPods for the US market.
To manage the transition, Apple has reportedly stockpiled inventory and accounted for around $900 million in additional costs this quarter due to tariffs — a figure that surprised some analysts who anticipated a greater impact.
Despite these changes, accessories and AppleCare services sourced from China will still face full tariffs. Cook added there’s no sign yet of US consumers rushing to make purchases ahead of possible price hikes.
Apple reported $95.4 billion in revenue for the quarter ending March, up from $90.75 billion last year, as India’s role in Apple’s supply chain continues to grow.