Starting from the June quarter, Apple will manufacture the majority of iPhones sold in the US in India. This move marks a major shift in Apple’s global supply chain, driven by concerns over potential tariffs from the US on Chinese-made goods. Apple CEO Tim Cook confirmed that India will now be the country of origin for iPhones meant for US customers.
Foxconn and Tata to Ramp Up Production
To meet the new demand, Apple’s Indian partners—Foxconn and Tata Group—are scaling up their production capabilities. These factories will not only cater to India’s growing domestic market but also to the large US market, one of Apple’s biggest revenue sources. This development aligns with India’s rising prominence as a global electronics manufacturing hub.
Vietnam to Handle iPads, Macs, and More
While iPhones head to the US from India, other Apple products like iPads, Macs, Apple Watches, and AirPods will be shipped from Vietnam. Apple’s diversification strategy aims to reduce its dependence on China and cushion the company from unpredictable trade policies and tariffs.
China Still Key for Global Demand
Despite the shift, China will continue to be Apple’s main manufacturing base for markets outside the US. Tim Cook clarified that the “rest of world” demand will still be fulfilled from China, maintaining its critical role in Apple’s global operations.
India’s Growing Importance for Apple
India is not just a production base—it is also becoming a vital sales market. Apple has seen record sales growth in the country. Cook revealed that India was among several regions where Apple achieved quarterly records. To tap further into this momentum, Apple plans to open new retail stores in India later this year, expanding beyond its current stores in Mumbai and New Delhi.
Avoiding Tariff Shockwaves
Apple’s manufacturing changes are part of a broader strategy to mitigate tariff risks. With tariff costs estimated at around $900 million this quarter, Apple is hedging its risks by diversifying its manufacturing locations. The full impact remains uncertain as the US continues negotiations with multiple regions.
Strong Financial Performance Despite Uncertainty
Despite these challenges, Apple reported robust financials—$95.4 billion in revenue and $24.8 billion in profit—fueled largely by iPhone sales, underscoring the success of its diversified global strategy.
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