Apple CEO Tim Cook confirmed this week that India is now the primary manufacturing base for iPhones sold in the United States. Speaking after Apple’s latest quarterly earnings release, Cook said that the majority of iPhones shipped to the US last quarter were made in India, with China now playing a secondary role focused mainly on supplying non-US markets.
“In terms of the country of origin, it’s the same as I referenced last quarter,” Cook said. “There hasn’t been a change to that, which is the vast majority of the iPhones sold in the US, or the majority, I should say, have a country of origin of India.”
Vietnam Handling Other Key Products for US
While India handles much of the iPhone production for the US, Apple is also diversifying the rest of its manufacturing base. According to Cook, Vietnam is now responsible for building several other Apple devices destined for the American market, including the MacBook, iPad, and Apple Watch.
China’s Role Shifts Toward Non-US Markets
On China’s role, Cook made it clear that the country is still a vital part of Apple’s global manufacturing network but has seen a shift in focus. “The products for other international countries, the vast majority of them are coming from China,” he said.
This reflects a broader rebalancing of Apple’s global supply chain, away from China as the central hub and toward a more distributed production model centered around India and Vietnam.
Trump Pushes Back on India Production
Despite the shift, Apple’s move to manufacture iPhones for the US in India hasn’t gone unnoticed, or unchallenged, by former US President Donald Trump. Earlier this year, Trump expressed frustration with Apple’s India expansion during a visit to Doha.
“I had a little problem with Tim Cook… I said to him, my friend, I am treating you very good… but now I hear you are building all over India. I don’t want you building in India,” Trump said.
While the US recently imposed 25% tariffs on a range of Indian goods, smartphones, computers, and electronic devices remain exempt from these new duties, for now.
India Sales Also Continue to Grow
Cook also highlighted India not just as a manufacturing hub but as a high-growth sales market for Apple. He said iPhone sales in India hit record levels, contributing to the company’s 10% year-on-year global revenue growth. Apple’s quarterly revenue for the period closed at $94 billion.
“We saw iPhone growth in every geographic segment and double-digit growth in emerging markets including India, the Middle East, South Asia, and Brazil,” Cook noted. India was listed among more than two dozen countries and regions where Apple set new June-quarter records.
Retail Expansion in India Underway
To match this growth, Apple is also working on expanding its retail presence in the country. After opening two flagship stores earlier this year, Cook confirmed that more Apple stores are in the pipeline for India, underlining the company’s long-term commitment to the market.
Tariff Costs Continue to Add Up
Addressing the broader impact of global tariffs on Apple’s operations, Cook said the company incurred $800 million in tariff-related costs in the June quarter, and expects those costs to rise to around $1.1 billion in the September quarter, assuming no further tariff changes are made.
“The situation around tariffs is evolving,” Cook said. “This estimate should not be used to make projections for future quarters, as there are many factors that could change, including tariff rates.”
