Most US iPhones will be made in India now: Apple Tim Cook

NEW DELHI: India will be the primary manufacturing country for supplying iPhones to the US beginning June quarter as Apple, the world's biggest electronics seller, rejigs global sourcing locations to factor in the Trump administration's reciprocal tariffs plans, especially on its biggest production hub China, CEO Tim Cook said on Friday.
The move will see Taiwanese Foxconn and the Tata group, Apple's two contract manufacturers for iPhones in India, ramp up capacities as their factories will be used for supplies not only for the domestic need here, but also for the large American market, which is one of the company's biggest sales regions.

Apple to increase its physical retail presence in India: Cook
Apple CEO Tim Cook said, "For the June quarter, we do expect the majority of iPhones sold in the US will have India as their country of origin."
And while India takes charge of iPhones in America, Vietnam will be the "country of origin" for almost all iPad, Mac, Apple Watch and AirPods products also sold in the US, Cook added. This way, the company looks to dodge any debilitating tariffs impact on China and insulate itself from major retail price hikes in the US market.
So, what happens to China and the vast manufacturing setup in the country? "China would continue to be the country of origin for the vast majority of total product sales outside the US," the Apple CEO said, indicating that demand in 'rest of world' (beyond the US) will be met from there.
But while Apple prepares India for a mega manufacturing push, the company also needs to factor in the fast-paced growth it is witnessing in the domestic market itself. India remains on the coveted list of countries where its volumes are creating quarterly records. "We set a number of quarterly records in countries and regions across the world, including the UK, Spain, Finland, Brazil, Chile, Turkey, Poland, India, and the Philippines," Cook said.
He said Apple is closer to expanding its physical retail presence in India beyond the two company-owned stores it has in New Delhi and Mumbai. Cook said there will be "new retail stores in India starting later this year". Apple's reshuffling of manufacturing schedules comes in as the company tries to protect itself from tariffs shocks, especially in its biggest manufacturing base, China.
Cook announced that tariffs could cost the company approximately $900 million in the current quarter. He said the situation is uncertain at this moment as it is yet not clear where the final tariffs on each country will end up, since the US administration has just started negotiations with each country and region. "We are not able to precisely estimate the impact of tariffs, as we are uncertain of potential future actions prior to the end of the quarter."
Despite the challenges, Apple posted strong financial results with quarter revenue at $95.4 billion and profits of $24.8 billion, led by iPhone sales.