Although the majority of Apple's iPhones sold in the US are still made in China, iPhone production in India has increased sharply after the Trump administration imposed tariffs and China responded with corresponding tariffs, making things difficult for Apple.
According to AFP news agency, on Thursday (May 1), Apple CEO Tim Cook said he expects the majority of iPhones sold in the US in the future will come from India.
Although iPhone shipments made in China still account for a large proportion of the US market, Apple has increased its production in India to reduce risks from escalating tariff wars between the US and China.
US President Donald Trump has imposed new tariffs totaling as much as 145% on Chinese goods this year, with the bulk of those tariffs taking effect in April, following his “liberation day” (April 2) announcements. This brings the total tariffs on some Chinese goods to as high as 245%, according to a White House briefing.
China retaliated by imposing new tariffs of up to 125% on US goods, before denouncing Washington’s “excessive” tariffs as a “meaningless numbers game” on April 11.
Although Apple reported better-than-expected first-quarter profits, Mr. Cook predicted that US tariffs could cost the company up to $900 million in the current quarter.
“We cannot accurately estimate the impact of the tariffs, as it is unclear whether further action will be taken before the end of the quarter,” Cook said, adding: “If current policies, tariffs and practices remain unchanged for the remainder of the quarter and no new tariffs are added, we estimate additional costs would be approximately $900 million.”
Apple's CEO also said that Vietnam will be the country of origin for nearly all iPad, Mac, Apple Watch and AirPods products sold in the US.
Apple accelerates production shift to India
Over the past year, Apple assembled $22 billion worth of iPhones in India, up nearly 60% from the previous year, indicating that Apple is gradually withdrawing from China as a major manufacturing and assembly hub.
While the Trump administration previously temporarily exempted electronics like smartphones and computers from retaliatory tariffs, the exemption did not apply to a separate 20% tariff on goods from China, imposed to pressure Beijing to address the fentanyl problem.
In India, Apple currently accounts for nearly 8% of the smartphone market share. According to Bloomberg, Apple product sales in India, mainly iPhones, reached nearly $8 billion in fiscal 2024.
Source: https://doanhnghiepvn.vn/quoc-te/ceo-apple-tim-cook-thong-bao-ve-hoat-dong-cua-hang-tai-an-do-va-viet-nam/20250502082217435
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