Apple to ‘supply’ most US iPhones from India; Trump tariffs on China to price it $900 mn – Firstpost

Apple will supply the vast majority of the iPhone offered within the US from India within the June quarter whereas China will produce the overwhelming majority of the gadgets for different markets amid uncertainty over tax tariffs, a high official mentioned on Friday.

Throughout the firm’s second-quarter earnings name, Apple CEO Tim Cook dinner mentioned the corporate made quarterly data in a number of international locations, together with India.

The corporate, nonetheless, recorded the seventh straight quarter of gross sales decline in China the place it produced the most important quantity of iPhones.

“For the June quarter, we do count on the vast majority of iPhones offered within the US may have India as their nation of origin, and Vietnam to be the nation of origin for nearly all iPad, Mac, Apple Watch, and AirPods merchandise additionally offered within the US. China would proceed to be the nation of origin for the overwhelming majority of whole product gross sales exterior the US,” Cook dinner mentioned.

In accordance with an evaluation by S&P World, Apple’s iPhone gross sales within the US had been 75.9 million models in 2024, with exports in March from India equal to three.1 million models in March, suggesting a have to double shipments both by way of new capability or redirecting shipments certain for the home market.

“Apple’s Indian exports already headed predominantly to the USA, which represented 81.9 per cent of telephones exported by the agency within the three months to February 28, 2025. That elevated to 97.6 per cent in March 2025 because of a 219 per cent soar in exports, possible reflecting the agency trying to preempt increased tariffs,” S&P World Market Intelligence report mentioned.

Cook dinner mentioned that Vietnam will turn out to be the nation of origin for nearly all iPad, Mac, Apple Watch, and AirPods merchandise offered within the US.

He mentioned that for the June quarter, a lot of the tariff publicity for Apple is on the charge of 20 per cent, which applies to imports to the US for merchandise which have China as their nation of origin.

“As well as, for China, there was a further 125 per cent tariff for imports of sure classes of merchandise introduced in April. For us, that’s a few of our US Apple Care and equipment companies and brings the overall charge in China for these merchandise to at the very least 145 per cent,” Cook dinner mentioned.

Cook dinner mentioned that the overwhelming majority of Apple’s merchandise, together with iPhone, Mac, iPad, Apple Watch, and Imaginative and prescient Professional, are presently not topic to the worldwide reciprocal tariffs that had been introduced in April, because the Commerce Division has initiated a Part 232 investigation into imports of semiconductor manufacturing tools and downstream merchandise that comprise semiconductors.

“For the June quarter, as I talked about in my opening feedback, we estimate the affect, assuming that the present world tariff charges, insurance policies, and purposes don’t change for the stability of the quarter to be USD 900 million to our prices. I wouldn’t wish to predict the combo of manufacturing sooner or later, however I needed to present you readability for the June quarter of the place the nation of origins are,” Cook dinner mentioned.

Within the second quarter ended March 29, 2025, Apple reported a 5 per cent improve in income to USD 95.35 billion, up from USD 90.75 billion in the identical interval final yr, pushed primarily by progress in companies, Mac and iPad gross sales.

Apple gross sales had been up by about 8 per cent within the Americas to USD 40.31 billion, 1.3 per cent in Europe to USD 24.45 billion, 16.54 per cent in Japan to 7.29 billion, USD 8.4 per cent in the remainder of Asia Pacific Areas, together with India on Y-o-Y foundation throughout the reported quarter.

Market analysis agency Counterpoint Analysis estimates that Apple recorded its highest-ever cargo quantity in India in March 2025 quarter with 29 per cent Y-o-Y progress, The corporate’s gross sales declined by 2.2 per cent in Larger China to USD 16 billion from USD 16.37 billion on Y-o-Y foundation throughout the March 2025 quarter.

Speaking about retail enterprise, Cook dinner mentioned that the corporate has opened two Apple shops throughout the quarter.

“We’re additionally trying ahead to a brand new retail retailer within the UAE, the arrival of the web retailer in Saudi Arabia, and new retail shops in India beginning later this yr,” Cook dinner mentioned.

iPhone gross sales declined by about 2 per cent to USD 46.84 billion year-over-year (Y-o-Y) from USD 45.96 billion within the March 2024 quarter.

Apple Mac gross sales grew by 6.6 per cent to USD 7.94 billion from USD 7.4 billion, iPad gross sales had been up about 15 per cent to USD 6.4 billion from USD 5.55 billion, and companies gross sales elevated 11.63 per cent to USD 26.64 billion from USD 23.86 billion on Y-o-Y foundation throughout the quarter.

Apple’s wearables, residence, and equipment recorded about 5 per cent decline to USD 7.52 billion throughout the March 2025 quarter from USD 7.91 billion within the year-ago interval.

The corporate within the second quarter launched iOS 18.4, which introduced Apple Intelligence to extra languages, together with French, German, Italian, Portuguese, Spanish, Japanese, Korean, and Simplified Chinese language, in addition to localised English to Singapore and India.