Apple has now moved firmly towards India. The entry of the ‘Made in India’ tag of iPhones sold in the US is a sure proof. Tim Cook himself has admitted that most of the iPhone sold in the US will now be made in India. This change is not just a business move, but is a big step taken due to the US tariff policy. The biggest reason behind this trend is the heavy tariffs on China, which Apple had to find an alternative to avoid and India came out as the strongest contender.
Now Apple’s strategy has not only been for the local market but to include India in the entire global supply chain. India has now become a strong partner not just a manufacturing location but for Apple.
Why the demand for iPhone made in India increased
Effect of American tariff
Business tension between the US and China is not hidden from anyone. US President Donald Trump’s tariff policy has imposed a tax of up to 145% on products coming from China. In such a situation, companies like Apple had to shift their manufacturing base. Countries like India and Vietnam benefited from this.
The US has a tariff of only 10% on the iPhone to be exported from India, which is extremely less than that of China. This difference is proving to be a big profit for Apple. For this reason, the demand for iPhone made in India has increased rapidly not only in India but also in developed markets like America.
Distance strategy from China
Apple was already ready to gradually reduce its dependence on China. The supply chain breakdown during the Kovid-19 gave a major blow to the company. Now the company is moving its units in India, moving away from China. Companies like Foxconn and Pegatron are manufacturing iPhone in India.
The quality of iPhones made in India is from international standard, and the production cost is also very low. This is getting a big benefit to Apple in the long term. The company has taken full advantage of Labor, Infrastructure and Government Production Linked Incentive (PLI) scheme in India.
Tim Cook himself gave information
CEO interview confirmed
Apple’s CEO Tim Cook revealed in an interview to CNBC that the company is now eyeing India. He said that in the coming times, a large number of iPhones sold in America will be of iPhone made in India. It is not just a cost saving move, but a long term strategy.
Tim Cook’s statement directly indicates that the company’s supply chain strategy is now completely changing. Earlier, where China was the only center, now India is playing a major role in it.
India’s entry into global supply chain
Apple has made India a hub of production, not just iPhone selling markets. This has entered India’s global supply chain. Now iPhones made in India are being exported directly to America, Europe and other countries.
India’s policy, skilled labor and manufacturing facility have attracted Apple. With this step, India can become a role model not only for Apple but also for other tech companies.
Vietnam’s big roll too
Production of other apple products
In addition to the iPhone, Apple has shifted the manufacturing of the rest of its products such as iPad, Macbook, Apple Watch and AirPods to Vietnam. Apple’s strategy is clear – it wants to reduce China’s dependence for all its products.
Vietnam is getting the benefit of this as the manufacturing facility there is developing rapidly and the tax rules there are very beneficial for Apple.
Effect of heavy tariff on China
The heavy tariff on the products coming from China to the US is affecting Apple’s cost structure. 145% of tariffs have forced the company to reelocign its production plans. At the same time, India and Vietnam currently have only 10% tariff, which gives Apple a big cost benefit.
The biggest impact of this change was that now Apple is not needed to increase the price of his product, due to which the customers are also happy and the company’s profit is also maintained.
Apple earns in March quarter
Company’s growth report
Apple performed tremendously in the March 2025 quarter. The company’s revenue rose 5.12% to $ 9540 million year after year, which was $ 9075 million last year. This figure shows that Apple’s strategy is going in the right direction.
The role of new production base like India and Vietnam was important in this growth. The company helped in cutting cost and entry in new markets also became easier.
Cost increased due to tariff
However, Apple has also faced some challenges with this growth. Due to the tariff, the company had to lift an additional cost of $ 90 million in the March quarter. Tim Cook admitted that Tariff’s uncertainty is a big problem for the company and it is difficult to estimate what will happen after June.
Apple can now further increase its investment in India and Vietnam under the long term policy to avoid such situations in future.
