Apple CEO Tim Cook revealed that a significant shift in the company’s supply chain will take place in the June quarter of 2025, with the majority of iPhones sold in the United States being produced in India. This move is seen as a strategic effort to mitigate the effects of the ongoing U.S.-China trade tensions and to reduce costs amid rising tariffs on Chinese-made products.
Tim Cook confirmed the change during Apple’s quarterly earnings call, noting that the decision is in line with the company’s long-term strategy to diversify its manufacturing operations outside of China. Apple has already been gradually shifting its production to India over the past few years, and this shift is expected to play a key role in maintaining the company’s profit margins.
The move comes as Apple faces challenges from the U.S.-China trade dispute, which has resulted in additional tariffs on Chinese-made goods. Apple is expected to incur a cost of approximately $900 million in the upcoming quarter due to these tariffs. By increasing production in India, Apple aims to offset these additional costs while continuing to meet the demand for its iPhones in the U.S. market.
Currently, India accounts for around 14% of Apple’s global iPhone production, and the company has ambitious plans to expand this figure. Apple has set a target to produce 25% of its iPhones in India by 2028, a move that aligns with the Indian government’s push to become a global manufacturing hub.
India’s role in Apple’s supply chain has been growing steadily, with the company’s major manufacturing partners, including Foxconn, Wistron, and Pegatron, expanding their operations in the country. These companies are now producing a wide range of Apple products, including the iPhone, iPad, and AirPods.
The shift to India is part of Apple’s broader plan to reduce its reliance on Chinese manufacturing amid rising geopolitical tensions. As Apple continues to strengthen its presence in India, the move is also expected to benefit the Indian economy, creating job opportunities and contributing to the country’s manufacturing sector.
As Apple looks to the future, the increased production of iPhones in India is seen as a significant milestone in the company’s efforts to reshape its global supply chain and secure its position as a leader in the tech industry
