Apple Inc., the world’s most valuable tech giant, is doubling down on India’s growing role in its global supply chain, with CEO Tim Cook stating during the company’s recent earnings call that a majority of iPhones sold in the US this June quarter will be manufactured in India. This marks a significant milestone in Apple’s multi-year plan to diversify manufacturing beyond China.

India Emerges as Apple's Manufacturing Hub

Tim Cook, without putting exact numbers to the statement, told analysts, “For the June quarter, we do expect the majority of the iPhones sold in the US will have India as their country of origin.” Although he refrained from forecasting future mixes, the statement reflects Apple’s growing confidence in India’s ability to meet global production standards.

Apple began assembling select iPhone models in India several years ago, but in recent quarters, the company has sharply accelerated the localisation of manufacturing. India has become a strategic pivot in Apple’s supply chain, not just for domestic sales but increasingly for international exports, especially to Western markets.

Geopolitics and Tariffs Shaping Apple's Strategy

A key driver behind Apple’s increased reliance on India is the ongoing tariff standoff between the US and China. At present, imports from China into the US are subjected to a staggering 145% tariff, making Chinese manufacturing far less cost-effective for the US market.

In contrast, India faces a more moderate 27% reciprocal tariff, imposed by the US from April 2. As per earlier diplomatic communications from the Trump administration, India could be the first nation to strike a bilateral tariff agreement with the US, opening doors for Apple to further expand its production in the region without being heavily penalised on import duties.

Tim Cook Acknowledges Difficulty in Predicting Tariff Impact

Despite optimistic projections for the current quarter, Cook admitted that the global trade environment remains highly unpredictable. Apple warned that if current tariff policies remain unchanged, it may add an extra $900 million in costs for the June quarter alone. “It’s very difficult to predict the tariff impact beyond the June quarter,” said Cook, stressing the financial implications of these global tensions.

India Sets Another Sales Record

As the US market begins to see more India-assembled iPhones, Apple’s performance in India itself is also showing promising momentum. The company has set yet another quarterly sales record in India, highlighting the dual benefit of expanding production and increasing sales in one of the world’s fastest-growing smartphone markets.

Apple has already opened two exclusive Apple retail stores in India—in Mumbai and Delhi—and is planning more by the end of this year. This expansion comes as part of a broader strategy to cement Apple’s position in premium smartphone segments within emerging markets.

China Sales Decline and Market Impact

On the flip side, Apple is experiencing challenges in China, its long-standing manufacturing and sales powerhouse. China’s share in Apple’s total sales has been shrinking, and for the recent quarter, Apple’s revenue from China dropped compared to the same period last year.

This has had a noticeable impact on Apple’s stock, with shares falling 4% in extended trading after the company reported the decline and issued the tariff-related cost warning. Analysts believe this shift signals Apple’s strategic rebalance away from China, both in terms of supply chain dependency and sales reliance.

Market Valuation Remains Strong Despite Setbacks

Despite the market reaction, Apple continues to command an enormous market capitalisation exceeding $3 trillion, maintaining its stature as one of the world’s most valuable and resilient companies.

The investor confidence remains strong, especially as the company adapts to the global manufacturing realignment and focuses more intensely on emerging growth regions like India.

India's Role in Apple’s Future Growth

Apple’s decision to manufacture more iPhones in India also ties in with the Indian government’s Production Linked Incentive (PLI) scheme, which has attracted global electronics giants with tax benefits and subsidies. As a result, Apple’s contract manufacturers like Foxconn and Pegatron have significantly ramped up local production capacity.

This move is not just symbolic; it’s a strategic realignment aimed at making Apple more resilient to geopolitical disruptions and tariff shocks.

Apple's Long-Term India Vision

Looking ahead, Apple’s bet on India is more than just a temporary adjustment. The company is setting up an ecosystem of suppliers, assemblers, logistics partners, and retail infrastructure, all aimed at making India a long-term hub for its global business operations.

This growing focus is expected to not only impact the availability of India-made iPhones globally but also create thousands of jobs in India, boost ancillary industries, and strengthen the country’s reputation as a reliable tech manufacturing base.

Key Takeaways

Tim Cook confirms most iPhones sold in the US this quarter will be made in India, signalling a major shift in global supply dynamics.

China remains a key player outside the US, but its dominance is waning amid steep tariffs and geopolitical tensions.

India continues breaking sales records, and Apple’s expanding retail and manufacturing presence highlights the country’s growing importance.

Apple faces tariff-related cost pressures, potentially adding $900 million to its June quarter costs if policies remain unchanged.

Despite China-related sales drops, Apple's $3 trillion market cap and long-term India plans remain a strong foundation for future growth.

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