Apple shifts iPhone production to India amid rising tariffs

Apple is increasingly turning to India to offset the impact of rising U.S. tariffs under the Trump administration’s reciprocal trade policy. CEO Tim Cook confirmed that most iPhones sold in the United States during the June quarter will be manufactured in India, as the company strategically reroutes its supply chain away from China.

Also Read: Apple eyes India as a key manufacturing hub for US-bound iPhones

The move comes amid a sharp increase in tariffs on Chinese imports, now facing a 145% duty compared to just 10% for countries like India and Vietnam. While Apple has not laid out plans beyond June, Cook said the situation remains difficult to predict, highlighting the fluid nature of ongoing trade negotiations.

Vietnam has emerged as Apple’s manufacturing base for other key products, including iPads, Macs, Apple Watches, and AirPods destined for the U.S. market. Meanwhile, accessories and AppleCare services sourced from China will still incur the full tariff, a cost Apple is currently absorbing.

To mitigate immediate risks, Apple has stockpiled inventory and factored an additional $900 million in costs into its financials for the current quarter. This figure was lower than some analysts expected.

Despite the headwinds, Apple reported strong financial results, with quarterly revenue reaching $95.4 billion, up from $90.75 billion the previous year. As Apple accelerates its geographic diversification, India is emerging as a key global manufacturing hub in the company’s long-term strategy.