✔️ Overview
- Tim Cook confirms: Majority of iPhones sold in the US are made in India.
- Vietnam handles MacBooks, iPads, and Apple Watch production for the US.
- China is now focused on non-US Apple markets.
- Apple sees record revenue growth in India.
- Donald Trump criticizes Apple’s shift to India, threatens tariffs.
✔️ India Emerges as Apple’s US Production Hub
Apple CEO Tim Cook announced during the company’s Q2 earnings call that a majority of iPhones sold in the United States are now manufactured in India. This marks a strategic shift in Apple’s global supply chain, previously heavily reliant on China.
Despite strong criticisms from former President Donald Trump, Apple has expanded its production facilities in India significantly over the last few years. According to Cook, there has been no change in this direction since the last quarter.
"The vast majority of iPhones sold in the US have a country of origin of India," – Tim Cook, Apple CEO
✔️ Why Vietnam Is Also Key in Apple’s Strategy
While India dominates iPhone manufacturing for the US market, Apple’s other products such as MacBooks, iPads, and Apple Watches are now largely produced in Vietnam. This diversification reduces dependency on any one country and aligns with Apple’s broader de-risking plan post-pandemic and geopolitical tensions.
✔️ China’s Role Redefined
Interestingly, China remains part of the equation, but Apple is repositioning Chinese factories to serve non-US regions. The realignment reflects Apple’s intent to spread production more evenly across multiple countries.
✔️ Donald Trump's Reaction
Trump publicly voiced his displeasure during a visit to Doha in May, where he said:
“I had a little problem with Tim Cook… but now I hear you are building all over India. I don’t want you building in India.” – Donald Trump
He later imposed a 25% tariff on imports from India. However, smartphones and key electronics remain exempt – for now. Experts caution this could change if political pressure increases.
✔️ Apple’s Revenue Boom in India
- Apple reported a 10% increase in global quarterly revenue to $94 billion.
- India is among 25+ countries where Apple posted record revenue in Q2.
- iPhone sales in India contributed significantly to this growth.
- Cook highlighted double-digit growth in India, Brazil, South Asia, and the Middle East.
✔️ Expanding Retail in India
Tim Cook also announced plans to open more Apple retail stores in India in the coming quarters. This complements the growing iPhone demand and reinforces India’s role as both a production base and a consumer market.
✔️ Global Tariff Impact on Apple
Apple estimates an $800 million tariff cost for Q2 and potentially $1.1 billion in Q3, depending on future policy changes. Tariffs, supply chains, and geopolitical shifts are deeply impacting tech manufacturing economics.
✔️ Key Takeaways
- Apple’s pivot to India is both strategic and economic.
- iPhones sold in the US are now primarily Indian-made.
- Vietnam is rising for non-iPhone Apple products.
- China remains critical but now serves non-US markets.
- Tim Cook is committed to expanding Apple’s Indian footprint.
- US-India trade dynamics are heating up due to tariffs.