Apple To Source Majority Of US iPhones From India In June Quarter: Tim Cook

Apple will source the majority of the iPhone sold in the US from India in the June quarter while China will produce the vast majority of the devices for other markets amid uncertainty over tax tariffs, a top official said on Friday.

During the company's second-quarter earnings call, Apple CEO Tim Cook said that Vietnam will become the country of origin for almost all iPad, Mac, Apple Watch, and AirPods products sold in the US.

"For the June quarter, we do expect the majority of iPhones sold in the US will have India as their country of origin, and Vietnam to be the country of origin for almost all iPad, Mac, Apple Watch, and AirPods products also sold in the US. China would continue to be the country of origin for the vast majority of total product sales outside the US," Cook said.

He said that for the June quarter, most of the tariff exposure for Apple is at the rate of 20 per cent, which applies to imports to the US for 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. For us, that's some of our US Apple Care and accessories businesses and brings the total rate in China for these products to at least 145 per cent," Cook said.

He added that the vast majority of Apple's products, including iPhone, Mac, iPad, Apple Watch, and Vision Pro, are currently not subject to the global reciprocal tariffs that were announced in April, as the Commerce Department has initiated a Section 232 investigation into imports of semiconductor manufacturing equipment and downstream products that contain semiconductors.

"For the June quarter, as I talked about in my opening comments, we estimate the impact, assuming that the current global tariff rates, policies, and applications don't change for the balance of the quarter to be USD 900 million to our costs. I wouldn't want to predict the mix of production in the future, but I wanted to give you clarity for the June quarter of where the country of origins are," Cook said Apple reported a 5 per cent increase in revenue to USD 95.35 billion for the second quarter ended March 29, 2025, up from USD 90.75 billion in the same period last year, driven mainly by growth in services, Mac and iPad sales However, iPhone sales declined by about 2 per cent to USD 46.84 billion year-over-year (YoY) from USD 45.96 billion in the March 2024 quarter.

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