Apple will source the majority of iPhones sold in the US from India in the present quarter ending June 2025. The company announces its plans in the earnings call with analysts on Friday. For other Apple products, including iPad, Apple Watch, Mac, and AirPods, Vietnam remains the prime choice for the company. The company has taken this step to diversify its supply chain and not limit its capacity to any one nation. 

The Cupertino-based company has restructured its supply chain, still largely dependent on China, to offset rising costs from U.S.-imposed tariffs. “The existing tariffs that apply to Apple today are based on the product's country of origin... We do expect the majority of iPhones sold in the US will have India as their country of origin, and Vietnam to be the country of origin for almost all iPad, Mac, Apple Watch, and AirPods products sold in the US,” Tim Cook said in the earnings call on Friday. 

He further adds, “China would continue to be the country of origin for the vast majority of total product sales outside the US,” as he underlines the company’s plans to diversify its production base and not remain subject to geopolitical or geographical constraints.

Products not Subject to Reciprocal Tariffs 

The vast majority of its products, including iPhone, Mac, Apple Watch, and Vision Pro, are currently not subject to the global reciprocal tariffs announced in April. The company estimates the tariffs' impact to cost a $900 million increase in costs in the June quarter, assuming the current global reciprocal tariffs announced in April.

Tariff Composition 

In the June quarter, the bulk of the company’s tariff exposure stems from the 20% tariff on Chinese imports announced in February. Additionally, a 125% tariff was imposed on certain after-sales products and accessories sourced from China, resulting in a combined tariff of up to 145% on some items.

Shifting assembly to India by 2026. 

Apple plans to shift the assembly of all iPhones destined for the U.S. market from China to India by the end of 2026. This marks a major shift in its manufacturing strategy. The decision comes amid rising U.S.-China trade tensions and growing tariffs on Chinese imports, which have increased production costs. With over 60 million iPhones sold annually in the U.S., currently assembled in China, the move aims to reduce tariff exposure and diversify Apple's supply chain.

Previous Attempts 

Earlier, in a proactive effort to mitigate the impact of impending U.S. tariffs, Apple had airlifted approximately 600 tons of iPhones, equating to about 1.5 million units, from India to the United States. This is aimed at avoiding the steep 125% tariffs imposed on Chinese imports under President Donald Trump's trade policies.