Apple CEO Tim Cook announced during the company’s Q2 earnings call that the majority of iPhones sold in the US during the June 2025 quarter will be manufactured in India, with Vietnam set to produce nearly all iPads, Macs, Apple Watches, and AirPods for the US market.

This strategic shift aims to mitigate a projected $900 million tariff impact, driven by a 20% US tariff on Chinese imports and an additional 125% levy on certain China-sourced Apple Care and accessories, totaling 145% for some products.

China will remain the primary production hub for Apple products sold outside the US. Cook noted that most Apple devices, including iPhones and Macs, are currently exempt from April’s global reciprocal tariffs due to a US Commerce Department investigation into semiconductor imports.

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Apple’s pivot follows a 219% surge in iPhone exports from India in March 2025, with 97.6% of these shipments destined for the US, per S&P Global. India’s 27% US tariff rate, compared to China’s 145%, makes it a cost-effective alternative.

Apple reported a 5% revenue increase to $95.35 billion for the quarter ending March 29, 2025, with record sales in India, driven by 29% shipment growth. Meanwhile, China sales dipped 2.2% to $16 billion.

Cook also revealed plans for new retail stores in India and the UAE, signaling further expansion.

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