iPhones With A Made-In-India Tag To Dominate US Market This Quarter, Says Tim Cook
Apple is ramping up its India manufacturing footprint in a big way — and US customers are about to see the impact. For the ongoing June quarter, most iPhones sold in the United States will carry a "Made in India" label, according to Apple CEO Tim Cook. The shift comes as the tech giant navigates rising US tariffs on Chinese imports and seeks to diversify its supply chain.
Cook shared the update during Apple’s second-quarter earnings call, noting that Vietnam will also play a crucial role in the company’s production strategy. “For the June quarter, we do expect the majority of iPhones sold in the US will have India as their country of origin, and Vietnam to be the country of origin for almost all iPad, Mac, Apple Watch, and AirPods products also sold in the US,” Cook said.
Meanwhile, China will remain the key manufacturing hub for Apple’s global markets outside the US.
Tariff Pressures Reshape Apple’s Global Supply Chain
The decision to shift US-bound production away from China appears to be a direct response to the mounting tariff load on Chinese-origin products. “For the June quarter, most of the tariff exposure for Apple is at the rate of 20%, which applies to imports to the US for products that have China as their country of origin,” Cook explained.
The pressure intensified in April when an additional 125% tariff was announced for specific product categories imported from China, including some Apple Care and accessories. This brings the total applicable duty on these items to a staggering 145%.
Despite the tariff hikes, Cook confirmed that the bulk of Apple’s product lines, including the iPhone, Mac, iPad, Apple Watch, and Vision Pro, are currently unaffected by the global reciprocal tariffs that came into effect in April.
$900 Million Cost Impact, But No Long-Term Forecasts Yet
Apple is feeling the squeeze, with Cook estimating a $900 million cost hit for the June quarter due to the new tariff landscape. “As I talked about in my opening comments, we estimate the impact, assuming that the current global tariff rates, policies, and applications don't change for the balance of the quarter to be $900 million to our costs,” he said.
While the company is offering this quarter-specific clarity, it is not committing to any long-term forecasts on its production mix. “I wouldn't want to predict the mix of production in the future, but I wanted to give you clarity for the June quarter of where the country of origins are,” Cook added.
Revenue Climbs Despite iPhone Dip
Apple’s second-quarter financials showed a mixed bag. The company reported a 5% rise in overall revenue, reaching $95.35 billion for the quarter ending March 29, 2025 — up from $90.75 billion a year earlier. Gains were primarily driven by strong sales in services, Macs, and iPads.
However, the iPhone, long seen as Apple’s crown jewel, saw a year-over-year dip of around 2%, bringing in $46.84 billion compared to $45.96 billion in the March 2024 quarter.
As tariff threats loom large — particularly with the Trump administration's trade policies putting pressure on China-based manufacturing — Apple’s India pivot seems poised to play a pivotal role in its US strategy moving forward.
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