Apple CEO Tim Cook Confirms: Majority of New iPhones Sold in the US Are 'Made' in India, While Vietnam Takes Lead for Other Products
In a significant shift in Apple’s global supply chain strategy, CEO Tim Cook confirmed on August 3, 2025, that the majority of iPhones sold in the United States during the last quarter were manufactured in India. This marks a pivotal change for the tech giant, which has historically relied on China as its primary production hub. During Apple’s quarterly earnings call, Cook also revealed that Vietnam has become the main manufacturing base for other Apple products, such as MacBooks, iPads, Apple Watches, and AirPods, destined for the US market. This strategic realignment comes amid escalating trade tensions and tariffs, positioning India and Vietnam as critical players in Apple’s diversified production landscape.
India Emerges as Apple’s iPhone Manufacturing Hub
Speaking to analysts after Apple’s Q2 FY25 earnings call, Tim Cook stated, “In terms of the country of origin, it's the same as I referenced last quarter. There hasn't been a change to that, which is the vast majority of the iPhone sold in the US or the majority, I should say, have a country of origin of India.” This announcement underscores India’s growing importance in Apple’s supply chain, with the country now accounting for approximately 44% of smartphone shipments to the US, according to Canalys data.
India’s rise as a manufacturing powerhouse for Apple began in 2017 with the assembly of entry-level iPhone models. By 2022, production expanded to include Pro models, and in FY 2024–25, Apple assembled $22 billion worth of iPhones in India, a 60% increase from the previous year. The country now produces one in every five iPhones globally, with Foxconn and Tata Electronics leading the charge. Reports indicate that Apple aims to source all US-bound iPhones from India by 2026, leveraging the country’s production-linked incentive (PLI) scheme to scale up capacity.
Cook’s remarks highlight India’s dual role as both a production hub and a high-growth market. “We saw iPhone growth in every geographic segment and double-digit growth in emerging markets including India, the Middle East, South Asia, and Brazil,” he noted, with India among over two dozen countries setting quarterly revenue records. Apple’s revenue for the quarter reached $94 billion, reflecting a 10% year-on-year increase, fueled significantly by iPhone sales in India.
Vietnam Steps Up for MacBooks, iPads, and More
While India takes center stage for iPhone production, Vietnam has emerged as the primary manufacturing hub for Apple’s other products sold in the US. Cook explained, “Vietnam will be the country of origin for almost all iPad, Mac, Apple Watch, and AirPods products also sold in the US.” This shift is part of Apple’s broader strategy to diversify its supply chain away from China, which now focuses primarily on producing devices for non-US markets.
Vietnam’s role is critical as it faces a lower 10% tariff on goods exported to the US, compared to the 145% tariff on certain Chinese imports. This makes Vietnam an economically viable option for Apple to mitigate tariff-related costs while maintaining production efficiency. The country’s growing manufacturing ecosystem, supported by investments from Apple’s partners like Foxconn, has positioned it as a key player in the company’s global operations.
Navigating Tariffs and Trade Tensions
Apple’s pivot to India and Vietnam comes in response to mounting trade tensions, particularly between the US and China. The Trump administration’s imposition of a 20% tariff on Chinese imports, with an additional 125% on certain products like Apple Care and accessories, has significantly increased costs. Cook estimated that tariffs added $800 million to Apple’s expenses in the June quarter, with a projected $1.1 billion impact in the September quarter if current policies remain unchanged.
Former US President Donald Trump has publicly criticized Apple’s shift to India, urging Cook to relocate production to the US. During a May 2025 visit to Doha, Trump remarked, “I had a little problem with Tim Cook… I said to him, my friend, I am treating you very good… but now I hear you are building all over India. I don’t want you building in India.” Despite this pressure, smartphones and electronics are currently exempt from the 25% US tariffs on Indian goods, allowing Apple to continue its India-focused strategy.
However, producing iPhones in the US remains impractical. A JPMorgan analysis suggests that an iPhone assembled in India costs $1,008, only slightly more than the $938 cost in China, but manufacturing in the US could inflate prices to $3,000—untenable for consumers. Cook has emphasized that Apple’s diversification efforts are driven by both economic and security concerns, noting the risks of over-reliance on a single country like China.
India’s Growing Role in Apple’s Ecosystem
Apple’s commitment to India extends beyond manufacturing. The company is expanding its retail presence with plans to open new physical stores, capitalizing on the country’s burgeoning smartphone market. Cook highlighted record revenue growth in India, driven by strong iPhone demand, which aligns with Apple’s broader success in emerging markets. In FY25, India exported iPhones worth nearly Rs 1.5 lakh crore, a sharp rise from Rs 85,000 crore in FY24, cementing its status as a global export hub.
To support this expansion, Apple has optimized logistics, chartering cargo flights to airlift approximately 1.5 million iPhones from India to the US and reducing customs clearance times at Chennai airport from 30 hours to just 6 hours. These efforts, combined with partnerships with Foxconn, Tata Electronics, and Pegatron, position India to potentially meet all US iPhone demand in the future, provided the ecosystem continues to scale.
Challenges and Future Outlook
While India and Vietnam offer cost-effective alternatives to China, challenges remain. India’s production capacity, though growing, requires further investment to meet Apple’s ambitious 2026 goal of sourcing all US-bound iPhones locally. The country currently produces 25–30% of global iPhone shipments, up from 18% in 2024, but scaling to 100% US demand will demand significant infrastructure development.
Moreover, Apple faces intense competition in China, where sales fell 2.3% to $16 billion in the March quarter due to pressure from domestic brands like Huawei, Xiaomi, and Oppo. Delays in rolling out AI features have also impacted Apple’s performance in the region, prompting a greater focus on markets like India.
Cook remains cautiously optimistic, projecting low to mid-single-digit revenue growth for the June quarter but warning that tariff uncertainties could alter projections. “The situation around tariffs is evolving,” he noted, emphasizing Apple’s proactive measures to mitigate costs through supply chain optimization.
Conclusion
Apple’s shift to India for iPhone production and Vietnam for other products marks a transformative moment in its global strategy. By leveraging India’s cost-effective manufacturing and growing market potential, Apple is not only navigating tariff challenges but also positioning itself for long-term growth. As the company continues to diversify its supply chain, India’s role as a manufacturing and consumer hub is set to expand, reshaping the global smartphone industry. With Vietnam complementing this strategy, Apple is poised to maintain its competitive edge despite geopolitical and economic headwinds.
Disclaimer: This blog is based on publicly available information from news sources and does not reflect personal opinions or endorsements.
