Apple to source most US iPhones from India in June quarter: Tim Cook

Tim Cook says majority of iPhones sold in the US this June quarter will be made in India as Apple diversifies its supply chain and braces for $900 million in tariff costs

Apple Chief Executive Officer Tim Cook has confirmed that the bulk of the iPhones sold in the United States (US) market in the April-June quarter will come from India. Even as the company prepares to relook at its supply chain, it expects the impact of the tariffs announced recently on costs to be around $900 million.

 

“For the June quarter, we expect a majority of the iPhones sold in the US to have India as their country of origin, and almost all iPads, Macs, Apple Watches, and AirPods to have Vietnam as the country of origin,” Cook said during an analyst call after announcing the company’s financial results for the March quarter. He added that China would continue to be the country of origin for a vast majority of total product sales outside the US.

 

“So if you look at the categories of tariffs applicable to us today, for the June quarter, most of our tariff exposure relates to the February IEEPA-related tariff at the rate of 20 per cent, which applies to imports to the US of products that have China as their country of origin. In addition, for China, there was an additional 125 per cent tariff for imports of certain categories of products announced in April,” he explained on the call.

 

IEEPA stands for the International Emergency Economic Powers Act, a US law that allows the President to declare a national emergency and take actions to address it.

 

While responding to an analyst, Cook said diversifying its supply chain to stay resilient will be a continued process for Apple. He said there was always some risk in the supply chain. “What we learned some time ago was that having everything in one location had too much risk. So, we have over time — with certain parts of the supply chain, not the whole thing, but certain parts of it — opened up new sources of supply. You could see that kind of thing continuing in the future,” he added.

 

The company posted a quarterly revenue of $95.4 billion, up 5 per cent over a year ago, and quarterly diluted earnings per share of $1.65, up 8 per cent.

 

The US tariff sanctions have so far excluded high-end tech goods like smartphones. “…the vast majority of our products, including iPhone, Mac, iPad, Apple Watch, and Vision Pro, are currently not subject to the global reciprocal tariffs announced (by US President Donald Trump) in April as the Commerce Department has initiated a Section 232 investigation into imports of semiconductors, semiconductor manufacturing equipment and downstream products that contain semiconductors,” said Cook.

 

The company also said that India, among other geographies, did well for it during the March quarter. “We set a number of quarterly records in countries and regions across the world, including the UK, Spain, Finland, Brazil, Chile, Turkey, Poland, India, and the Philippines.” India will also see Apple expanding its retail presence starting this year, taking the total number of retail stores in the country to four.

 

Despite uncertainties, Apple’s installed base grew to an all-time high in total and in every geographic segment, and iPhone upgrades grew in double digits year-on-year.

 

According to Union Minister for Information Technology Ashwini Vaishnaw, Apple exported more than ₹1.5 trillion worth of iPhones from India last financial year. Overall, the country shipped out more than ₹2 trillion smartphones in 2024-25, an increase of 54 per cent over the previous year.   

BIG DEMAND 

- 75.9 mn units of iPhones were sold in the US in 2024

  - 97.6% iPhones exported from India headed to the US in March, up from 81.9% in February, says S&P Global Market Intelligence report

  - 3.1 mn units were exported from India in March, says the report