Tim Cook Confirms Apple's iPhone Production Shift to India

New Delhi (The Uttam Hindu): Tech giant Apple is procuring half of its iPhones for the US market from India, thanks to the country's lower tariffs compared to China. According to CEO Tim Cook, Apple is sourcing other products from Vietnam for the US market, while still manufacturing the "vast majority" of its products for other countries in China.

India to be 'Country of Origin' for Many iPhones

Cook confirmed that India will be the 'country of origin' for a large number of iPhones sold in the US. This move is part of Apple's effort to diversify its supply chain and reduce dependence on China, amid high tariff rates. A cost breakdown suggests that iPhones assembled in China cost $938, while production in India would cost $1,008, a 2% increase. However, this is significantly lower than the 30% price hike if Apple were to manufacture iPhones in the US.

Apple's Plans for India

Apple aims to shift the assembly of all its US-sold iPhones to India by 2026, as part of its pivot away from China. The company has already started importing assembled component sets from China, with Foxconn and Tata playing key roles in the production process. Apple reported revenue of $95.4 billion for the quarter ending March, with iPhone revenue standing at $46.84 billion. CEO Tim Cook expects overall revenue to grow in the "low to mid-single digits" in the current quarter, but warned that forecasts beyond June are uncertain due to the fluid tariff situation.