Move over China: iPhones for America now mostly assembled in India, confirms Apple CEO Tim Cook
Tim Cook
confirmed on Thursday that the majority of iPhones sold in the United States in the past quarter were manufactured in India, signaling a major shift in the company's global supply chain, reported TOI. China, once Apple's dominant manufacturing hub, is now producing primarily for non-US markets.
According to the TOI report, Cook told analysts after Apple's quarterly earnings call, 'There hasn't been a change to that, which is the vast majority of the iPhone sold in the US or the majority, I should say have a country of origin of India.'
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The Apple chief added that while India leads iPhone production for the US, Vietnam is the primary source for other Apple products such as MacBooks, iPads, and Apple Watches.
China, he said, continues to manufacture most Apple products destined for other international markets. '...the products for other international countries, the vast majority of them are coming from China,' Cook said.
This disclosure comes amid criticism from former US President
Donald Trump
, who earlier this year expressed dissatisfaction over Apple's shift toward Indian manufacturing. 'I had a little problem with Tim Cook... I said to him, my friend, I am treating you very good... but now I hear you are building all over India. I don't want you building in India,' Trump had remarked during his May visit to Doha.
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Smartphones and electronics, however, remain exempt from the new 25% US tariffs on Indian goods announced earlier this week.
Apple's focus on India also extends to its domestic market. Cook said the company continues to see strong revenue growth in India, driven by iPhone sales. 'We saw an acceleration of growth around the world in the vast majority of markets we track... and we had June quarter revenue records in more than two dozen countries and regions, including the US, Canada, Latin America, Western Europe, the Middle East, India, and South Asia," TOI quoted him as saying.
India is among Apple's fastest-growing markets, and the company plans to expand its retail footprint in the country.
Cook said iPhone sales grew in every region, with double-digit growth in emerging markets including India, Brazil, South Asia, and the Middle East.
Addressing concerns around tariffs, Cook said, 'For the June quarter, we incurred approximately $800 million of tariff-related costs. For the September quarter... we estimate the impact to add about $1.1 billion to our costs.' However, he added that these numbers could vary depending on future
tariff
policy changes.
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