Apple will nearly source its complete range of products.
iPhones
Sold annually in the U.S. — roughly 60 million handsets per year — will be assembled at plants located in India, according toCEO Tim Cook’s statement on Thursday. This proposed shift occurs amidst growing tensions and considerations related to manufacturing strategies.
The Trump administration implemented tariffs targeting China.
of up to 145%.
The large technology company is forecasting a
A $900 million effect on Apple’s expenses
This upcoming quarter, provided that tariff policies, rates, and applications remain unchanged from their current state.
In the June quarter, we anticipate that most of the iPhones sold in the U.S. will originate from India,” Cook stated at Apple’s Q1 financial briefing on May 1. He also mentioned, “Vietnam is set to become the source for nearly every iPad, Mac, Apple Watch, and AirPods product sold within the U.S.
It occurs with certain items like
mobile phones
and
computers
have
been exempted
from those
tariffs
For now, Apple has heavily focused itsiPhone manufacturing in China. This makes the company susceptible to tensions arising fromany trade disputes between the nations involved, leading tospeculation about potential changes.
Tariffs might result in higher prices.
For the top-selling item of the company.
If Apple relocates its third-party iPhone assembly for the U.S. market to India, it might sidestep major financial pressures from a trade war. However, this move would also expose both companies to fresh tariff challenges posed by India’s policies.
The firm had already started
shipping iPhones produced in India
, bolstering its product inventory, prior to the implementation of new tariffs.
A global perspective on iPhones and tariffs
While it’s unclear how long the trade war with China will continue, Apple’s shift is part of a larger strategy that may include more US component manufacturing, says Angelo Zino, a senior vice president at CFRA Research.
Zino stated that “Apple needs to consider the long-term implications for its manufacturing capabilities. We believe Apple aims to increase itsiPhone production capacity in India twofold within the coming two to three years as a strategy to reduce potential disruptions from ongoing China-US conflicts.”
As mentioned, Zino anticipates that Apple will maintain a significant footprint in China, with approximately 15% of its sales coming from this market and worldwide iPhone production capacities continuing to depend heavily on Chinese manufacturing facilities. Cook affirmed that China will remain the primary source for most products sold globally outside the U.S.
Although shifting all of its iPhone manufacturing to the U.S. would be too expensive, according to Zino, Apple might consider increasing the production of modems and custom-designed chips alongside Taiwan Semiconductor Manufacturing Company in the United States.
“That is clearly where the value of Apple lies for the Trump administration, in our view, rather than assembling its devices,” Zino said.
Will Apple’s move of production to India persist?
Muzammil Hassan
, head of patent portfolio management and monetization in India for Quandary Peak Research, noted that Apple’s shift to more manufacturing in India was already happening before tariffs were enacted.
“I don’t think it’s a temporary move,” Hassan said. “Foxconn has been training thousands of employees in their factories in Tamil Nadu. In fact, there were reports that iPhone 17 might be developed and manufactured exclusively in India.”
Although moving all U.S. iPhone production to India might seem ambitious, Hassan noted that Apple isn’t leading the way with this approach. “Apple appears to be tardy,” he stated. “Companies like Samsung, Oppo, Vivo, and Motorola had already begun producing their smartphones in India.”
Furthermore, Google could potentially
moving production of its Pixel phone
To India from Vietnam, he mentioned.
Initially released on May 2, 2025 at 3:11 PM PT.