Apple likely to lean on India as tariffs force shift away from China: Report

Apple is expected to rely more heavily on India for iPhone production as it adapts to rising US import tariffs on Chinese goods under the Trump administration’s reciprocal trade policy. Speaking to CNBC after the company’s Q2 FY25 results, CEO Tim Cook confirmed that India will be the country of origin for a majority of iPhones sold in the US during the June quarter. The move is part of Apple’s broader strategy to reroute its supply chain away from China, which now faces a 145% tariff on many electronics exported to the US

“It’s very difficult to predict beyond June,” Cook said in an interview with CNBC, indicating that the tariff environment remains uncertain.

While India will handle most iPhone production for the US market, other products are shifting as well. Vietnam is expected to produce most iPads, Macs, Apple Watches, and AirPods shipped to the US, benefiting from a comparatively lower 10% tariff.

To manage the impact, Apple has stockpiled inventory and built tariff-related expenses into its financials. The company has allocated approximately $900 million in additional costs for the current quarter due to tariffs. The figure, while significant, was lower than some analysts had anticipated.

AppleCare services and accessories produced in China remain subject to the 145% tariff, but Apple appears to be absorbing that cost for now. There is no clear evidence yet of consumers buying early to avoid potential price increases.

Apple reported $95.4 billion in revenue for the quarter ending March, up from $90.75 billion a year earlier.

With this shift, India is increasingly becoming a central part of Apple’s global manufacturing network, not only for domestic sales but also for exports to major markets such as the United States.