Tech giant Apple is procuring half of its iPhones for its US market from India, as the tariffs are lower than in China, its Chief Executive Officer (CEO)\u00a0Tim Cook\u00a0said.\u00a0<\/small><\/p>\n\n\n\n
Speaking to CNBC <\/em>after quarterly earnings, Tim Cook also added that it is sourcing its other products from Vietnam for its US market. However, he added, the company still makes the \u201cvast majority\u201d of its products for other countries in China. <\/small><\/p>\n\n\n\n Cook also confirmed that India will be the \u2018country of origin\u2019 for a large number of iPhones that will be sold in the US. This comes as the country tries to move away from China, owing to its high tariff rates as compared to the 10 per cent tariffs imposed on Indian and Vietnamese-made goods.<\/p>\n\n\n\n Why Apple is moving iPhone production away from China\u2019s high tariffs<\/strong><\/p>\n\n\n\n Tim Cook\u2019s remarks follow US President\u00a0Donald Trump\u2019s announcement of reciprocal tariffs. Talking about the impact on the company, Cook said that it saw a \u201climited\u201d effect in the March quarter, as Apple was able to optimise its supply chain.\u00a0<\/small><\/p>\n\n\n\n iPhones to cost less if production is moved to India<\/strong><\/p>\n\n\n\n An India Dispatch<\/em> report citing JPMorgan analysis suggests that the tech giant would be able to keep the price of its phones almost the same if it completes the final steps of moving the facility to India. A cost breakdown suggests that iPhones assembled in China cost $938, whereas it would cost $1,008 if the production were moved to India. This increase of 2 per cent in the prices is relatively cheaper as compared to the 30 per cent hike in the prices of iPhones, if the company decides to manufacture phones in the US. <\/p>\n\n\n\n A report from the\u00a0Financial Times<\/em>\u00a0suggests that Apple is planning to shift the assembly of all of its US-sold iPhones to India by 2026 as the company pivots away from China following a trade war between the two countries. Following Trump’s tariff announcement, the company witnessed a wipeout of $700 billion from its market value.\u00a0<\/p>\n\n\n\n This comes after the company spent almost two decades in China and spent heavily on creating a production line which helped the company to become a $3 trillion tech giant. <\/small><\/p>\n\n\n\n Moving its assembly to India would mean that the company would have to double its production output. In 2024, Apple sought to pivot towards India for the production of its iPhones, for which its main supplier, Foxconn, and Tata started importing already assembled component sets from China.\u00a0<\/p>\n\n\n\n Apple Q2 results: Revenue grows to $95.4 billion, iPhone leads the charge<\/strong><\/p>\n\n\n\n For the quarter ending March, Apple reported revenue of $95.4 billion, up from $90.75 billion a year ago. iPhone revenue stood at $46.84 billion. Mac revenue was $7.95 billion, while iPad revenue was reported at $6.4 billion.\u00a0<\/small><\/p>\n\n\n\n In the current quarter, ending in June, Cook expects overall revenue to grow in the \u201clow to mid-single digits\u201d on an annual basis. However, he admitted that forecasts beyond June are murky, indicating that the tariff situation remains fluid. <\/small><\/p>\n\n\n\n The company follows a fiscal year cycle that begins in October and ends in September. The first quarter is from October to December, and the results were reported in January.\u00a0<\/p>\n\n\n\n Trump\u2019s reciprocal tariffs: What it means for Apple and iPhone supply chains<\/strong><\/p>\n\n\n\n On 2 April, Trump announced reciprocal tariffs on more than 100 countries, including India and China. On 9 April, he announced a\u00a090-day pause on these tariffs\u00a0as several countries tried to negotiate a deal with the US. However, the list did not include China, which retaliated with its own reciprocal tariffs.\u00a0<\/small><\/p>\n\n\n\n Currently, the US has imposed 145 per cent tariffs on Chinese products, while China has imposed 125 per cent tariffs on US goods.<\/p>\n\n\n\n Eqwires Research Analyst<\/a><\/strong><\/p>\n\n\n\n Top-notch SEBI registered research analyst<\/a><\/strong><\/p>\n\n\n\n Best SEBI registered Intraday tips provider <\/a><\/strong><\/p>\n\n\n\n info@eqwires.com<\/strong><\/a><\/p>\n\n\n\n Telegram <\/a>| Facebook <\/a>| Instagram<\/a><\/strong><\/p>\n\n\n\n Call: +91 9624421555 \/ +91 9624461555<\/em><\/strong><\/p>\n\n\n\n www.eqwires.com<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":" Tech giant Apple is procuring half of its iPhones for its US market from India, as the tariffs are lower than in China, its Chief Executive Officer (CEO)\u00a0Tim Cook\u00a0said.\u00a0 Speaking to CNBC after quarterly earnings, Tim Cook also added that it is sourcing its other products from Vietnam for its US market. However, he added, the company still makes the \u201cvast majority\u201d of its products for other countries in China. Cook also confirmed that India will be … Continue reading “Apple shifts iPhone production for US market to India, confirms Tim Cook”<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":4202,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[74],"tags":[],"class_list":["post-4201","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-best-sebi-registered-advisory-company"],"_links":{"self":[{"href":"https:\/\/www.eqwires.com\/tutorials\/wp-json\/wp\/v2\/posts\/4201","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.eqwires.com\/tutorials\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.eqwires.com\/tutorials\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.eqwires.com\/tutorials\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.eqwires.com\/tutorials\/wp-json\/wp\/v2\/comments?post=4201"}],"version-history":[{"count":1,"href":"https:\/\/www.eqwires.com\/tutorials\/wp-json\/wp\/v2\/posts\/4201\/revisions"}],"predecessor-version":[{"id":4203,"href":"https:\/\/www.eqwires.com\/tutorials\/wp-json\/wp\/v2\/posts\/4201\/revisions\/4203"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.eqwires.com\/tutorials\/wp-json\/wp\/v2\/media\/4202"}],"wp:attachment":[{"href":"https:\/\/www.eqwires.com\/tutorials\/wp-json\/wp\/v2\/media?parent=4201"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.eqwires.com\/tutorials\/wp-json\/wp\/v2\/categories?post=4201"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.eqwires.com\/tutorials\/wp-json\/wp\/v2\/tags?post=4201"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}