Apple\u2019s CEO Tim Cook has confirmed a major strategic shift in the company\u2019s global supply chain, stating that the majority of iPhones sold in the United States during the June quarter will originate from India. This development marks a significant pivot in Apple’s efforts to reduce dependence on Chinese manufacturing amid rising geopolitical tensions and trade-related costs.<\/p>\n
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Apple CEO Tim Cook said the majority of iPhones sold in the US in Q2 FY25 will be manufactured in India, underscoring a key supply chain realignment.<\/p>\n
Speaking to CNBC after Apple\u2019s Q2 FY25 earnings call, Cook acknowledged that the ongoing reciprocal trade policies under the Trump administration are forcing the company to accelerate its diversification efforts. India has emerged as the primary alternative for iPhone assembly as Apple seeks to mitigate the impact of a newly imposed 145% import tariff on China-origin goods.<\/p>\n
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India’s role in iPhone production is being expanded as Apple works to avoid a 145% US import tariff on Chinese goods.<\/p>\n
While Apple\u2019s focus on India is clear for the June quarter, Cook was cautious about projecting beyond that period, citing uncertainty around tariff policies. \u201cIt\u2019s very difficult to predict beyond June,\u201d he said. The fluid nature of trade discussions and regulatory unpredictability could further influence Apple’s sourcing decisions in the months ahead.<\/p>\n
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Cook said the future beyond June remains unclear due to volatile trade policies, despite India\u2019s increasing share in US-bound iPhone shipments.<\/p>\n
Alongside India, Vietnam is now playing a critical role in Apple\u2019s supply chain, particularly for iPads, Macs, AirPods, and Apple Watches destined for the US market. These product lines face a comparatively lower 10% tariff \u2014 making Vietnam a strategically viable alternative to China for non-iPhone categories.<\/p>\n
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Vietnam is now the production hub for iPads, Macs, and wearables heading to the US, taking advantage of a lower 10% tariff versus China’s 145%.<\/p>\n
In preparation for potential disruptions, Apple has built up inventory buffers and factored approximately $900 million in additional costs into its current quarter\u2019s financial forecast. The figure, largely attributed to tariffs, was lower than some analysts had anticipated, signaling proactive cost management by the tech giant.<\/p>\n
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Apple has budgeted $900 million this quarter to offset tariff costs, a number that surprised analysts expecting greater impact.<\/p>\n
Despite efforts to shift iPhone production, AppleCare services and China-sourced accessories remain subject to the full 145% tariff. So far, Apple has chosen to absorb these costs without passing them on to consumers. According to Cook, there\u2019s \u201cno obvious evidence\u201d of early consumer purchases to preempt potential price hikes.<\/p>\n
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Tariffs on China-made accessories persist, but Apple is currently absorbing the costs, with no signs of panic buying by consumers.<\/p>\n
Apple posted revenue of $95.4 billion for the quarter ending in March, a rise from $90.75 billion during the same period last year. The performance underscores the company\u2019s resilience despite significant geopolitical and logistical challenges, particularly its efforts to pivot toward India and Vietnam for manufacturing.<\/p>\n
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Apple\u2019s revenue grew to $95.4 billion in Q2 FY25, reflecting stable performance during a complex supply chain transition.<\/p>\n","protected":false},"excerpt":{"rendered":"
Apple CEO Confirms Majority of iPhones Sold in the US Will Be Made in India Apple\u2019s CEO Tim Cook has confirmed a major strategic shift in the company\u2019s global supply chain, stating that the majority of iPhones sold in the United States during the June quarter will originate from India. This development marks a significant […]<\/p>\n","protected":false},"author":4,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1365],"tags":[],"ppma_author":[1331],"class_list":{"0":"post-8011","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business-news"}," _eael_post_view_count":0,"authors":[{"term_id":1331,"user_id":4,"is_guest":0,"slug":"sourabh","display_name":"Sourabh Sharma","avatar_url":{"url":"https:\/\/trending.niftytrader.in\/wp-content\/uploads\/2025\/11\/Sourabh-Sharma.png","url2x":"https:\/\/trending.niftytrader.in\/wp-content\/uploads\/2025\/11\/Sourabh-Sharma.png"},"0":null,"1":"","2":"","3":"","4":"","5":"","6":"","7":""}],"_links":{"self":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/8011","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/comments?post=8011"}],"version-history":[{"count":1,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/8011\/revisions"}],"predecessor-version":[{"id":8013,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/8011\/revisions\/8013"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/media\/8012"}],"wp:attachment":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/media?parent=8011"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/categories?post=8011"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/tags?post=8011"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/ppma_author?post=8011"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}