Tech sector giant Apple Now it is manufacturing half of its iPhones for the American market from India. Because tariffs are lower in India compared to China. Company CEO Tim Cook gave this information. Speaking to CNBC after the announcement of quarterly results, Tim Cook also said that the company is sourcing its other products for America from Vietnam. However, he clarified that China still manufactures “the majority” of Apple’s products for other countries.
India will be the ‘Country of Origin’ for iPhones
Cook said that India will be the ‘country of origin’ for a large number of iPhones sold in the US. This step has been taken at a time when the company is trying to distance itself from China, because China’s tariff rates are much higher than those of India and Vietnam. The US imposes only 10% tariff on goods coming from India and Vietnam.
This comment of Tim Cook has come after US President Donald Trump announced the imposition of reciprocating tariffs. Regarding its impact on the company, Cook said that its impact was “limited” in the March quarter because Apple had better optimized its supply chain.
Manufacturing iPhone expected to be cheaper in India
The India Dispatch report, citing JPMorgan’s analysis, states that if Apple completely shifts its manufacturing unit to India, it can keep the prices of its iPhones almost the same as before.
According to the cost breakdown, an iPhone assembled in China costs around $938, while it would cost around $1,008 if produced in India. This is just a 2% increase, which is much less than the 30% price increase in US manufacturing.
Apple Q2 results: Revenue increased to $95.4 billion
Apple’s revenue increased to $95.4 billion in the March quarter. It was $90.75 billion in the same quarter last year. In this, the revenue of iPhone was 46.84 billion dollars. The company earned $7.95 billion from Mac and $6.4 billion from iPad.
Regarding the current quarter ending in June, CEO Tim Cook expressed hope that the company’s total revenue can grow at the rate of “low to mid single digits” on an annual basis. However, he also acknowledged that the outlook for the situation beyond June is unclear, indicating that the tariff situation still remains uncertain.
Apple follows a financial year cycle starting in October and ending in September. Accordingly, the first quarter is from October to December, the results of which are declared in January.
First Published – May 2, 2025 | 11:29 AM IST
