Most US iPhones to be made in India, says Apple CEO amid China trade tensions
Most US iPhones to be made in India, says Apple CEO amid China trade tensions
Apple is accelerating its efforts to diversify its global manufacturing footprint by ramping up iPhone production in India. CEO Tim Cook revealed that a majority of iPhones sold in the United States during the June quarter will be sourced from India—a strategic move aimed at reducing dependence on China amid escalating U.S.-China trade tensions.
The tech giant is also shifting the production of other key products—such as iPads, Macs, Apple Watches, and AirPods—to Vietnam. These steps are intended to soften the financial blow of new U.S. tariffs on Chinese-made electronics, which could cost Apple up to $900 million this quarter.
In a bold maneuver in March, Apple airlifted five planeloads of iPhones from India to the U.S. over just three days, ahead of a 10% reciprocal tariff on Chinese imports. The move helped the company maintain stable retail prices in the American market.
Analysts estimate that by the end of 2025, India could account for 20% to 25% of Apple’s iPhone production. India’s expanding manufacturing base and local supplier network are supporting this transition, though matching China’s scale and efficiency remains a long-term challenge.
Despite external pressures, Apple posted robust results for Q2 FY25, with $95.4 billion in revenue (up 5% YoY) and net income of $24.78 billion. The company also announced a $100 billion share buyback and a 4% dividend hike, reflecting its confidence in sustained growth.
