Apple is set to shift the majority of its iPhone production for the US market to India in the June 2025 quarter, marking a strategic pivot in response to escalating trade tensions with China. CEO Tim Cook confirmed the shift during Apple’s second-quarter earnings call, highlighting India’s growing importance in the company’s global supply chain.
“For the June quarter, we expect most iPhones sold in the US will originate from India,” Cook said, citing tariff uncertainties and increasing export strength from India. Recent data shows a dramatic rise in Indian iPhone exports, with 97.6% of shipments in March 2025 destined for the US—a 219% surge compared to previous months.
Vietnam is also becoming a key manufacturing hub, taking over production of nearly all iPads, Macs, Apple Watches, and AirPods sold in the US. This diversification strategy aims to shield Apple from new US import tariffs on Chinese-origin goods, which now carry a base rate of 20% and up to 145% for some product categories.
While China will remain the main source of Apple products sold outside the US, the company’s evolving production landscape reflects a broader shift in global manufacturing priorities.
In Q2 FY2025, Apple reported $95.35 billion in revenue, a 5% year-on-year increase. Growth was fueled by robust performance in services, Mac, and iPad sales. Meanwhile, iPhone sales dipped by 2%, and sales in Greater China fell 2.2% to $16 billion. Conversely, sales in the Americas rose 8% to $40.31 billion, and Apple achieved its highest-ever shipment volume in India, with 29% year-on-year growth.
Apple is also expanding its retail footprint, announcing new stores in the UAE, Saudi Arabia, and upcoming outlets in India later this year.