Apple will source majority of iPhones sold in the US from India in the present quarter ending June 2025, while almost all iPad, Apple Watch, Mac, and AirPods products will have Vietnam as the country of origin, as the Cupertino-based company shuffled its supply chain which remains heavily reliant on China, to check on the cost increase due to the tariffs imposed by the US, company executives told analysts at an earnings call Friday.
Chief executive Tim Cook, in an interview said over half of the iPhone sold in the US in the March quarter came from India, highlighting the significant shift away from China for its iPhone supply chain.
“The existing tariffs that apply to Apple today are based on the product's country of origin... 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 sold in the US. China would continue to be the country of origin for the vast majority of total product sales outside the US,” Tim Cook said in the earnings call, Friday.
Apple said its impact from tariffs was limited in March, but estimated a $900 million increase in costs in the June quarter, assuming the current global tariff rates do not change and no new tariffs are added. To note, the vast majority of its products, including iPhone, Mac, Apple Watch, and Vision Pro, are currently not subject to the global reciprocal tariffs announced in April.
Apple reported a 5% on-year increase in revenues to $95.4 billion in the January-March quarter, driven by strong sales across all its product categories.
For the June quarter, Apple said that the majority of its tariff exposure relates to the 20% tariff on China announced in February. There was an additional 125% tariff on imports of some of its after-sales products and accessories which are imported from China, bringing the total tariff on some products to 145%, Cook said.
Apple stated that the impact from tariffs was limited in the March quarter, as it was able to optimise its supply chain and built-ahead inventory. The inventory build-up by the company is also one of the unique factors that will benefit the company in the June quarter, Cook said.
Apple shipped 98% of its exports from India to the US in March, amounting to around 3.1 million units, a sharp jump from February's 84%, according S&P Global Market Intelligence.
The market research firm added that Apple is reportedly planning to source all iPhones sold in the US from India from 2026, as Apple’s contract manufacturers ramp up capacity by opening new facilities. India faces a lower 26% reciprocal tariff from the US as compared to China's 145%. New Delhi is also engaged with Washington for a bilateral trade deal that could be signed later this year.
Cook declined to confirm the production mix of iPhones sold in the US beyond June, adding that it is difficult to predict beyond June due to uncertainty about whether the current tariff rates will sustain, and whether majority of its products will be subject to a sector-specific tariff.
“What we learned some time ago was that having everything in one location had too much risk with it. And so over time certain parts of the supply chain, not the whole thing, but certain parts of it, opened up new sources of supply and you could see that kind of thing continuing in the future,” Cook said.
The company said it has seen no quantifiable impact on demand to date. However, it has revised its outlook for the coming quarter, expecting a low to mid-single digit growth year-over-year/
Cook said Apple is engaged in tariff discussions with the US government, adding that it will continue to engage on the price impact of its products due to tariffs, though it had nothing to announce on price impact presently.
Regarding sales in the India market, Tim Cook said Apple set a quarterly record in India. The company will also be opening two new retail stores in India later this year.
Counterpoint Research said Apple had a record quarter in India, as shipments surged 29% on-year, reaching record volumes, aided by strong sales of its iPhone 16 series. The quarter also saw the introduction of Apple Intelligence features for users in India, which led to a stronger sales performance.
“During the March quarter, we saw that in markets where we had rolled out Apple intelligence, the year-over-year performance on the iPhone 16 family was stronger than those where Apple intelligence was not available,” Cook said.
Chief executive Tim Cook, in an interview said over half of the iPhone sold in the US in the March quarter came from India, highlighting the significant shift away from China for its iPhone supply chain.
“The existing tariffs that apply to Apple today are based on the product's country of origin... 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 sold in the US. China would continue to be the country of origin for the vast majority of total product sales outside the US,” Tim Cook said in the earnings call, Friday.
Apple said its impact from tariffs was limited in March, but estimated a $900 million increase in costs in the June quarter, assuming the current global tariff rates do not change and no new tariffs are added. To note, the vast majority of its products, including iPhone, Mac, Apple Watch, and Vision Pro, are currently not subject to the global reciprocal tariffs announced in April.
Apple reported a 5% on-year increase in revenues to $95.4 billion in the January-March quarter, driven by strong sales across all its product categories.
For the June quarter, Apple said that the majority of its tariff exposure relates to the 20% tariff on China announced in February. There was an additional 125% tariff on imports of some of its after-sales products and accessories which are imported from China, bringing the total tariff on some products to 145%, Cook said.
Apple stated that the impact from tariffs was limited in the March quarter, as it was able to optimise its supply chain and built-ahead inventory. The inventory build-up by the company is also one of the unique factors that will benefit the company in the June quarter, Cook said.
Apple shipped 98% of its exports from India to the US in March, amounting to around 3.1 million units, a sharp jump from February's 84%, according S&P Global Market Intelligence.
The market research firm added that Apple is reportedly planning to source all iPhones sold in the US from India from 2026, as Apple’s contract manufacturers ramp up capacity by opening new facilities. India faces a lower 26% reciprocal tariff from the US as compared to China's 145%. New Delhi is also engaged with Washington for a bilateral trade deal that could be signed later this year.
Cook declined to confirm the production mix of iPhones sold in the US beyond June, adding that it is difficult to predict beyond June due to uncertainty about whether the current tariff rates will sustain, and whether majority of its products will be subject to a sector-specific tariff.
“What we learned some time ago was that having everything in one location had too much risk with it. And so over time certain parts of the supply chain, not the whole thing, but certain parts of it, opened up new sources of supply and you could see that kind of thing continuing in the future,” Cook said.
The company said it has seen no quantifiable impact on demand to date. However, it has revised its outlook for the coming quarter, expecting a low to mid-single digit growth year-over-year/
Cook said Apple is engaged in tariff discussions with the US government, adding that it will continue to engage on the price impact of its products due to tariffs, though it had nothing to announce on price impact presently.
Regarding sales in the India market, Tim Cook said Apple set a quarterly record in India. The company will also be opening two new retail stores in India later this year.
Counterpoint Research said Apple had a record quarter in India, as shipments surged 29% on-year, reaching record volumes, aided by strong sales of its iPhone 16 series. The quarter also saw the introduction of Apple Intelligence features for users in India, which led to a stronger sales performance.
“During the March quarter, we saw that in markets where we had rolled out Apple intelligence, the year-over-year performance on the iPhone 16 family was stronger than those where Apple intelligence was not available,” Cook said.
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