During the company’s second-quarter earnings call, Apple CEO Tim Cook said the company made quarterly records in several countries, including India.
The company, however, recorded the seventh straight quarter of sales decline in China where it produced the largest volume of iPhones.
“For the June quarter, we do expect the majority of iPhones sold in the US will have India as their country of origin, and Vietnam to be the country of origin for almost all iPad, Mac, Apple Watch, and AirPods products also sold in the US.
“China would continue to be the country of origin for the vast majority of total product sales outside the US,” Cook said.
According to an analysis by S&P Global, Apple’s iPhone sales in the US were 75.9 million units in 2024, with exports in March from India equivalent to 3.1 million units in March, suggesting a need to double shipments either through new capacity or redirecting shipments bound for the domestic market.
“Apple’s Indian exports already headed predominantly to the United States, which represented 81.9 per cent of phones exported by the firm in the three months to February 28, 2025.
“That increased to 97.6 per cent in March 2025 as a result of a 219 per cent jump in exports, likely reflecting the firm looking to preempt higher tariffs,” S&P Global Market Intelligence report said.
Cook said that Vietnam will become the country of origin for almost all iPad, Mac, Apple Watch, and AirPods products sold in the US.
He said that for the June quarter, most of the tariff exposure for Apple is at the rate of 20 per cent, which applies to imports to the US for products that have China as their country of origin.
“In addition, for China, there was an additional 125 per cent tariff for imports of certain categories of products announced in April.
“For us, that’s some of our US Apple Care and accessories businesses and brings the total rate in China for these products to at least 145 per cent,” Cook said.
Cook said that the vast majority of Apple’s products, including iPhone, Mac, iPad, Apple Watch, and Vision Pro, are currently not subject to the global reciprocal tariffs that were announced in April, as the Commerce Department has initiated a Section 232 investigation into imports of semiconductor manufacturing equipment and downstream products that contain semiconductors.