In a move with far-reaching implications, Apple CEO Tim Cook has announced that the majority of iPhones sold in the United States will soon be sourced from India. The strategic pivot comes as trade tensions between Washington and Beijing heat up once again, this time with a 145% tariff on Chinese-made goods including iPhones.

A New Origin Story for the iPhone

Apple has been gradually expanding its manufacturing footprint in India for years, but this marks the company’s strongest signal yet that the country will become a central hub in its global supply chain. Cook stated that most US-bound iPhones will soon carry India as their country of origin, a notable departure from the brand’s long-standing dependence on Chinese manufacturing. This isn’t just about diversification. It’s damage control.

Tariffs Could Cost Apple $900 Million

The new tariffs, part of former President Trump’s renewed protectionist trade agenda, could impose up to $900 million in additional costs on Apple, Cook warned. The full financial impact is still uncertain, but the message is clear: China is no longer a safe bet. Interestingly, Cook revealed that the recent tariffs had only a limited effect on Apple’s second-quarter performance. That is largely because the policy shift came late in the quarter, leaving much of the financial fallout to be absorbed in the April to June window.

Earnings Hold Strong for Now
Despite geopolitical headwinds, Apple posted solid results for the January to March quarter:

• Revenue: $95.36 billion, up 5.1% year-on-year
• Net Profit: $24.78 billion, up 4.8%
• Earnings per Share: $1.65, up from $1.53 a year ago

However, a consumer buying spree triggered by the tariff news, essentially a rush to buy iPhones before price hikes, will not be reflected until the next quarter. That short-term boost could mask deeper challenges ahead.

Cook’s Balancing Act

This is not the first time Tim Cook has had to play diplomat in chief. During Trump’s first term, Apple successfully lobbied to keep the iPhone off tariff lists. But this time, the political winds have shifted, and the pressure to build resilience into Apple’s supply chain is greater than ever.

What This Signals for the Industry

Apple’s pivot is more than a response to a single policy change. It is a signal of shifting global production dynamics. As India rises in the manufacturing hierarchy, the era of China’s dominance in tech hardware may be starting to fray. The iPhone’s future, it seems, is being rewritten one factory at a time.

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