'Majority of the iPhones sold in the U.S. will be 'Made in India', says Apple CEO Tim Cook

Technology giant Apple Inc. is turning to India for the bulk of its iPhone production for the U.S. market.

CEO Tim Cook confirmed that a significant share of devices sold in the June quarter in the U.S. will list India as their country of origin, marking a pivotal shift in the tech giant's supply chain strategy amid escalating U.S.-China trade tensions.

"For the June quarter, we do expect the majority of the iPhones sold in the U.S. will have India as their country of origin," Cook told analysts during Apple's latest earnings call.

Though he refrained from offering a longer-term forecast, the remarks signal an accelerated push by Apple to diversify away from China, where tariffs have soared to at least 145% on goods shipped to the U.S.

"I would not want to predict the mix of production in the future, but I wanted to give you clarity for the June quarter," Cook said.

The move comes as the U.S. enforces a new wave of reciprocal tariffs under the Trump administration. In early April, Trump imposed tariffs on over 100 countries, including India and China. While a 90-day pause has been granted for most countries to negotiate, China remains excluded, prompting retaliatory tariffs and pushing Apple to rework its global manufacturing calculus.

Cook noted that Apple continues to produce "the vast majority" of devices for non-U.S. markets in China. But for the U.S.—its most valuable market—the company is increasingly betting on India, where lower tariffs and an expanding manufacturing base offer a more favourable cost equation.

Apple's pivot has already seen India-based assembly lines, led by suppliers like Foxconn and Tata, ramping up production using component sets shipped from China. While an iPhone assembled in India is marginally more expensive than one built in China—$1,008 versus $938, according to a JPMorgan analysis—the added cost is still significantly lower than the 30% hike the company would face by relocating production to the U.S.

In a bid to mitigate cost pressures, Cook said Apple was able to optimise its supply chain during the March quarter, minimising the near-term impact. However, he acknowledged that the outlook beyond June remains unclear.

The Financial Times earlier reported that Apple plans to assemble all iPhones sold in the U.S. in India by 2026. Such a move would require Apple to double its production output in India—an ambitious goal that the company appears to be pursuing.

Apple's Rs 1 lakh crore milestone

Meanwhile, India is emerging as a crucial market for Apple on both the supply and demand fronts. Earlier, The Economic Times reported that Apple crossed the Rs 1 lakh crore milestone in iPhone exports from India in 2024, with shipments valued at $12.8 billion (Rs 1.08 lakh crore).

▶️Another big milestone for smartphone PLI.
▶️Apple exports Rs.1 lakh cr ($12.8 bn) worth iPhones in CY24.
▶️Apple ecosystem emerges as the largest job creator, especially for women.
▶️Target to cross $20 bn smartphone exports in FY25.

🔗 https://t.co/TeQagIZDaz pic.twitter.com/zRyfp6zKiz

— Ashwini Vaishnaw (@AshwiniVaishnaw) January 13, 2025

The growth isn't limited to exports; Apple's sales in the country, particularly of iPhones, have surged since it opened its first two retail stores in Mumbai and New Delhi. The company reportedly plans to open more stores by the end of the year.

The expansion also follows reports that India may soon sign a bilateral tariff agreement with Washington, a move that could further smooth Apple's transition.

Apple's revenue growth

For the March quarter, Apple posted revenue of $95.4 billion, up from $90.75 billion a year ago. iPhone sales stood at $46.84 billion, with Mac and iPad contributing $7.95 billion and $6.4 billion, respectively.

Looking ahead to the current quarter ending in June, Cook expects revenue to grow in the "low to mid-single digits," though he cautioned that tariffs could add as much as $900 million in costs.