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10h ago

Apple Holds Course on India iPhone Production Despite New 25% U.S. Tariff

Apple’s absorption of $800 million in duties, with a forecasted $1.1 billion hit, underscores its resolve to base U.S. iPhone production in India.

Apple CEO Tim Cook stands in the middle of a group of people at the inauguration of Donald Trump on Jan. 20, 2025, in Washington, DC.
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Analysts said manufacturing iPhones in India would remain cost-competitive despite the recently announced tariffs.
Your next iPhone probably came from India

Overview

  • The majority of iPhones sold in the United States are now manufactured in India, CEO Tim Cook confirmed on Apple’s August earnings call.
  • A 25% tariff on Indian imports took effect immediately, leading Apple to incur about $800 million in costs during the June quarter and anticipate another $1.1 billion in the current period.
  • Apple has no plans to alter its India expansion strategy and will continue to absorb higher duties rather than scale back local production.
  • Apple is also diversifying production of Macs, iPads and Apple Watches to Vietnam to further reduce reliance on China.
  • Industry analysts say India remains cost-competitive for iPhone manufacturing thanks to federal incentives, local component supply and lower labor costs.