India becomes primary iPhone Supplier for the US market For the June quarter.
Apple plans for Vietnam to be the country of origin for most iPads, Macs, Apple Watches, and AirPods sold in the US.
AppleCare services and accessories sourced from China will still be subject to the high tariffs.
Apple is making a significant shift in its manufacturing strategy, naming India as the primary production hub for iPhones sold in the United States and Vietnam for iPad, Mac, AirPods, and Apple Watch. The move comes in response to former President Donald Trump’s reciprocal trade policy, which included steep new tariffs of up to 145% on Chinese imports. In contrast, products imported from India and Vietnam have significantly lower tariffs of around 10%, making them more viable for Apple’s evolving supply chain.
SurveyIn its Q2 FY25 earnings call, Apple CEO Tim Cook confirmed, “We do expect the majority of iPhones sold in the U.S. will have India as their country of origin.” While India will dominate iPhone manufacturing, Vietnam will produce iPads, Macs, Apple Watches, and AirPods for American consumers. However, goods sold outside the United States will be manufactured in China.
While the company has already taken steps to mitigate the impact of these tariffs, such as stockpiling inventory and absorbing higher costs, Cook stated that the future remains uncertain. “It’s very difficult to predict beyond June,” he said, referring to the constantly shifting global trade landscape. Apple has already budgeted approximately $900 million for additional expenses this quarter due to tariff-related impacts.
Also read: iPhone 16e price drops to under Rs 54,000 during Amazon Great Summer Sale 2025
Interestingly, AppleCare services and accessories sourced from China will continue to be subject to high tariffs, which the company says it can handle for the time being.
Despite the challenges, Cook stated that overall revenue is expected to grow by the low to mid-single digits year on year. The tech giant’s revenue for the March quarter was $95.4 billion, up from $90.75 billion the previous year, with the iPhone accounting for $46.84 billion, the Mac for $7.95 billion, and the iPad for $6.4 billion.
As global trade dynamics change, Apple’s shift towards India and Vietnam could prove critical to its long-term stability and profits.
Follow Us
Himani Jha
Himani Jha is a tech news writer at Digit. Passionate about smartphones and consumer technology, she has contributed to leading publications such as Times Network, Gadgets 360, and Hindustan Times Tech for the past five years. When not immersed in gadgets, she enjoys exploring the vibrant culinary scene, discovering new cafes and restaurants, and indulging in her love for fine literature and timeless music. View Full Profile
