Apple is expected to increasingly lean on India to soften the blow of rising tariffs under the Trump administration’s reciprocal trade policy.
Speaking to CNBC after announcing the company’s quarterly earnings, CEO Tim Cook confirmed that India will be the country of origin for most iPhones sold in the US in the June quarter as Apple reroutes its supply chain away from China.
But beyond June, it's not clear how the situation will evolve. “It’s very difficult to predict beyond June,” Cook said, indicating that the tariff situation remains fluid.
“We do expect the majority of iPhones sold in the US will have India as their country of origin,” said Cook. Vietnam, meanwhile, will handle most production for iPads, Macs, Apple Watches, and AirPods heading to the U.S. — countries currently facing a 10% tariff, compared to a steep 145% tariff on Chinese imports.
For now, Apple has stockpiled inventory and baked the risk into its financials. The company has budgeted around $900 million in extra costs for the current quarter, citing tariffs as a key reason. This figure surprised some analysts who expected the hit to be even higher.
AppleCare services and accessories sourced from China will still face the full 145% tariff, a cost Apple appears willing to absorb for now. As for consumers, there’s “no obvious evidence” of early buying behaviour to beat future price hikes.
Apple posted $95.4 billion in revenue for the quarter ending March — up from $90.75 billion a year ago.
As Apple shifts its manufacturing geography, India continues to cement its position as a key global hub — not just for local sales, but as a crucial node in Apple’s global supply chain.
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