## Apple Plans Production Changes for iPhones and Other Devices
Apple is set to obtain most of the iPhones sold in the United States from India during the June quarter. Meanwhile, China will be responsible for producing the majority of devices for other markets due to ongoing uncertainties regarding tax tariffs, according to a senior executive’s statement made on Friday.
In the second-quarter earnings call, Apple CEO Tim Cook revealed that Vietnam will become the primary source for nearly all iPads, Macs, Apple Watches, and AirPods sold in the US.
“For the June quarter, we anticipate that the majority of iPhones sold in the US will be sourced from India. Additionally, Vietnam will serve as the origin for nearly all iPads, Macs, Apple Watches, and AirPods sold in the US. China will remain the source for the majority of product sales outside the US,” Cook shared.
Cook noted that during the June quarter, Apple’s exposure to tariffs is primarily at a rate of 20%, which applies to imports into the US for products originating from China.
“Furthermore, there was an additional 125% tariff imposed on imports of specific product categories from China, announced in April. This affects our US Apple Care and accessories, bringing the total tariff rate to at least 145% for these products,” Cook explained.
In addition, he mentioned that the majority of Apple’s products, including iPhones, Macs, iPads, Apple Watches, and Vision Pro, are currently exempt from the global reciprocal tariffs introduced in April. This is due to the Commerce Department initiating a Section 232 investigation into imports of semiconductor manufacturing equipment and related products that contain semiconductors.
“For the June quarter, as I mentioned earlier, we estimate that the financial impact, assuming there are no changes to the current global tariff rates, policies, and applications for the rest of the quarter, will amount to $900 million in costs. While I cannot predict future production mixes, I wanted to provide clarity regarding the country of origins for the June quarter,” Cook stated.
Apple reported a 5% rise in revenue, reaching $95.35 billion for the second quarter ending March 29, 2025, compared to $90.75 billion in the same quarter last year. This increase was largely driven by growth in services, Mac, and iPad sales.
However, iPhone sales saw a decline of approximately 2%, totaling $46.84 billion year-over-year, down from $45.96 billion in the March 2024 quarter.
