Tim Cook confirms majority of US-bound iPhones will soon be “Made in India” as Apple scrambles to protect margins from escalating tariff costs.
May 2, 2025, New Delhi:
Apple Inc. is bracing for a $900 million tariff hit in the current quarter, CEO Tim Cook revealed Thursday during the company’s earnings call. The cost stems from US-China trade tensions, which are forcing the tech giant to shift iPhone production to India at an accelerated pace.
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Despite beating Wall Street expectations with $95.4 billion in revenue and $24.8 billion in quarterly profit, Apple warned that ongoing tariff uncertainty is disrupting its global supply chain and could shrink profit margins.
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Cook said that while iPhones made in China still dominate US shipments, India will soon become the origin for the majority of iPhones sold in the US. “We are taking proactive steps to reduce exposure,” he noted.
🏭 India & Vietnam to Anchor US Supply
- Cook confirmed that Vietnam will supply nearly all iPads, Macs, Apple Watches, and AirPods for the US.
- China will continue to be Apple’s main production hub for markets outside the US.
Canalys analyst Le Xuan Chiew noted Apple had stockpiled inventory to cushion tariff impacts, but shifting production to India is now a long-term strategy to avoid future shocks.
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🔍 What This Means
- $900 million in costs could pressure pricing or squeeze margins.
- Apple shares dipped over 3% in after-market trading.
- Analysts warn that the pivot to India may face execution challenges, including limited capacity and potential cost increases for consumers.
“Cook’s strategy raises questions about Apple’s long-term cost structure,” said Emarketer’s Jacob Bourne. “Margins may erode or prices may rise.”
📊 Key Figures
- Revenue: $95.4 billion (Q1)
- Profit: $24.8 billion
- China Revenue: $17 billion
- Tariff Cost Estimate: $900 million (Q2)
🏷️ Tags
Apple, US China Trade War, iPhone India Production, Apple Tariff Loss, Tim Cook, India Manufacturing, iPhone Supply Chain, Apple Vietnam Production, Tech Supply Chain Shift