admin Apple has shifted a significant portion of its iPhone production to India, with the majority of iPhones sold in the United States during the second quarter now originating from Indian factories, CEO Tim Cook revealed following the company’s quarterly earnings report on July 31.
While speaking to analysts, Cook confirmed that India has become the dominant manufacturing base for iPhones destined for the US, a role traditionally held by China. “The majority of iPhones sold in the US have India as their country of origin,” he stated. In contrast, China has shifted its focus toward manufacturing Apple devices for non-US markets.
Vietnam has also risen in Apple’s global supply chain. MacBooks, iPads, and Apple Watches sold in the US are now primarily being produced there. Meanwhile, products shipped to other international markets still largely originate from Chinese factories.
Trump’s Opposition and Tariff Implications
The manufacturing shift comes despite growing criticism from former US President Donald Trump, who has repeatedly objected to Apple’s decision to move iPhone production to India. During a visit to Doha in May, Trump publicly rebuked Apple CEO Tim Cook, saying he was “not happy” with the company’s expansion in India.
Last week, the Trump campaign announced a 25% tariff on Indian imports. Though electronics like smartphones and computers are currently exempt, experts caution that these exemptions may not last, particularly as political scrutiny around US-China and US-India trade relations intensifies.
Cook acknowledged the uncertainty surrounding US tariffs, stating Apple incurred $800 million in tariff-related costs in Q2 and anticipates that figure could rise to $1.1 billion in the current quarter, depending on future policy developments.
India Emerges as Key Market and Retail Focus
In addition to becoming a key manufacturing hub, India has also delivered record-breaking iPhone revenue growth for Apple. Cook noted that India was one of over two dozen countries where Apple achieved all-time high revenues in the June quarter.
To support this momentum, Apple plans to expand its retail footprint in India by launching more physical stores across major cities.
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