Most iPhones in the US Will Now Be Made in India: Tim Cook

Apple has announced a significant shift in its global manufacturing strategy. According to CEO Tim Cook, a majority of devices destined for the US in the June quarter will originate from India and Vietnam, rather than China. The company reported $95.4 billion in quarterly revenue, marking a 5% year-over-year increase, surpassing Wall Street expectations.

Supply Chain Diversification: India and Vietnam Take the Lead

iPhones, iPads, Macs, and More Will Now Be "Made in India or Vietnam"

Apple CEO Tim Cook informed analysts that the majority of iPhones sold in the US will be made in India, while “Vietnam to be the country of origin for almost all iPad, Mac, Apple Watch and AirPods products sold in the US.”

Despite this shift, China will still remain the primary source for products sold outside of the United States.

Tariff Pressures Continue to Hit Apple’s China Operations

$900 Million Tariff-Related Costs Expected

The shift comes at a time when Apple remains heavily exposed to US tariffs on Chinese goods, particularly under former President Donald Trump’s administration. A 27% tariff still applies to Chinese imports, although smartphones have been temporarily exempted from an additional 125% reciprocal tariff.

Cook estimated “$900 million in costs in the current quarter because of tariffs, provided no new fees are introduced.” However, he cautioned, “This estimate should not be used to make projections for future quarters as there are certain unique factors that benefit the June quarter.”

Global Sales Performance and Future Expansion

iPhone Sales and Services See Growth Worldwide

Apple reported that iPhone sales rose by 2% to $46.84 billion. Cook highlighted that the company hit quarterly records in several countries, including India, UK, Spain, Finland, Brazil, Turkey, Chile, Poland, and the Philippines.

With this momentum, Apple plans to open new retail stores in India later this year, signaling stronger local engagement.

Apple’s Long-Term Plan to Minimize Risk

Tim Cook elaborated on Apple’s broader supply chain strategy:

“What we learned some time ago was that having everything in one location had too much risk with it, and so we have over time, with certain parts of the supply chain, not the whole thing … opened up new sources of supply. You could see that kind of thing continuing in the future.”

Despite efforts to diversify, decoupling from China remains complex as it is still Apple’s third-largest market after the US and Europe. China revenue fell 2.3% to $16 billion, impacted by strong competition from local smartphone brands.

Apple Services Revenue Continues to Climb

The tech giant saw nearly 12% growth in its services business, which includes iCloud, App Store, and Apple Pay, reaching $26.65 billion in Q2. This area remains a vital revenue pillar as Apple navigates hardware supply shifts.

Future Outlook and Product Strategy

While Apple recently launched a series of new devices—including MacBook Air, Mac Studio, and the refreshed iPad Air, it also unveiled the iPhone 16e, a device aimed at competing in the mid-range market.

When asked about future uncertainties, Cook said:

“I’m not sure what will happen with the tariffs, and there is the Section 232 investigation going on. And so it’s very difficult to predict beyond June.”
Section 232 relates to national security investigations, potentially affecting semiconductors and other tech components.

In terms of software, Apple continues to invest in enhancing Siri, but Cook added:

“We need more time to complete our work on these features so they meet our high-quality bar.”

Conclusion

Apple’s strategic move to relocate production to India and Vietnam marks a new era in its global supply chain resilience. With the company continuing to navigate geopolitical tensions and tariff hurdles, it is also investing in product innovation and service growth. While China remains a key part of its operations, Apple is clearly laying the groundwork for a more diversified and robust global presence.