NEW DELHI: Apple CEO Tim Cook on Thursday said that most US iPhones would be “sourced” in India amid rising tariff tensions between the States and China.
He said he expected a “majority of iPhones sold in the US will have India as their country of origin.”
He noted that trade tariffs targeting imports from China—where Apple manufactures many of its iPhones—could cost the company as much as $900 million. He, however, said that the exact impact of the tariffs remains difficult to predict.
Despite trade pressures, Apple posted stronger-than-expected earnings for the first three months of the year, with Cook noting that tariffs had only a limited impact on the company’s fiscal second-quarter results.
It reported solid earnings for the first three months of the year, posting a 4.8% increase in profit to $24.78 billion, or $1.65 per share, up from $23.64 billion, or $1.53 per share, a year ago. Revenue rose 5.1% to $95.36 billion from $90.75 billion.
Trump’s announcement of a 145% tariff on Chinese-made goods, including iPhones, triggered a rush among US consumers to buy devices ahead of expected price hikes. However, the surge in sales won’t be reflected in Apple’s earnings until the April-June quarter. The renewed trade war has intensified pressure on Cook to replicate the diplomatic maneuvering that previously helped shield the iPhone from tariffs during Trump’s first term.