Most iPhones sold in June quarter will be ‘Made in India,’ Apple’s Cook says

A majority of the iPhones sold in the US during the current quarter will be made in India, Apple chief executive officer (CEO) Tim Cook said in the company’s second quarter earnings call on Thursday.

Apple’s fiscal year runs from October to September.

“For the June quarter, we do expect the majority of iPhones sold in the US will have India as their country of origin,” Cook said.

Apple had transported about 1.5 million iPhones, or around 600 tons of cargo, from India to the US earlier last month, Reuters reported.

The iPhone maker stepped up production at Foxconn’s plant in Chennai, and even extended operations to Sunday, the Reuters report said.

Customs data showed shipments from India to the US totaled $770 million in January and $643 million in February.

Cook’s remarks come as the iPhone maker aims to avoid the fallout from US President Donald Trump’s recent tariffs, largely aimed at Chinese imports.

Although some tech products have been granted temporary reprieve, Cook said if the current tariffs remain unchanged, Apple’s costs may zoom by $900 million during the quarter.

“We are not able to precisely estimate the impact of tariffs, as we are uncertain of potential future actions prior to the end of the quarter,” Cook said.

While the majority of iPhones sold in the US will have India as their country of origin, Vietnam will be “the country of origin for almost all iPad, Mac, Apple Watch, and AirPods products sold in the US, Cook said.

China will continue to be the country of origin for the vast majority of total product sales outside the US, Cook said, without disclosing the company’s long-term supply chain projection, considering the steep tariff imposed against China by Trump.

Sales in China, meanwhile, declined about 2% to $16 billion during the quarter which ended 29 March.

Apple’s guidance for the April-June quarter anticipates revenue growth in the low to mid-single digits, slightly below market estimates, partly due to the impact from tariffs.

“We will manage the company the way we always have, with thoughtful and deliberate decisions, with a focus on investing for the long term,” Cook said during the call.

Shares of Apple were down 15% this year through Thursday’s close before they further  declined about 5% after markets opened in New York on Friday.

The Cupertino, California-based company received at least two downgrades on Friday after its results put the spotlight on concerns over US tariffs.

In the report, the company also announced plans to raise its share buyback program by $100 billion and boost its quarterly dividend 4% to 26 cents a share.