Bengaluru, May 3 : Apple expects India to become the primary manufacturing base for iPhones sold in the United States, Chief Executive Tim Cook said on Thursday, as the tech giant accelerates its shift away from China amid ongoing trade tensions.
Cook told reporters he anticipates that a majority of iPhones sold in the U.S. will soon have India listed as their country of origin. The move follows a significant ramp-up in Indian production, which increased by nearly 60% over the past year, with Apple assembling $22 billion worth of iPhones in the country.
The strategic pivot comes after tariffs imposed by the Trump administration and retaliatory duties from China disrupted Apple’s reliance on Chinese manufacturing. While China continues to supply most iPhones to the U.S. for now, the trend is shifting in India’s favor.
Cook also warned that Apple could incur additional costs of up to $900 million in the current quarter if global tariff policies remain unchanged. “Assuming current global tariff rates, policies, and applications do not change for the balance of the quarter and no new tariffs are added, we estimate the impact to add $900 million to our costs,” he said.
In addition to the iPhone shift, Cook said Vietnam is set to become the country of origin for nearly all iPads, Macs, Apple Watches, and AirPods sold in the U.S.
Apple, which holds an estimated 8% share of India’s smartphone market, posted nearly $8 billion in sales in the country for fiscal 2024, according to Bloomberg. The company’s increased presence in India comes as New Delhi continues to position itself as a global electronics manufacturing hub.
Despite a temporary U.S. exemption on tariffs for some electronics, a separate 20% duty on Chinese imports remains in place, adding pressure on companies with supply chains tied to China.
