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Apple’s $900M Tariff Hit Triggers Supply Chain Shift to India

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Facing up to $900 million in tariff-related costs, Apple is accelerating one of its most significant supply chain shifts in recent memory — moving more iPhone production to India.

CEO Tim Cook revealed during the company’s latest earnings call that a majority of iPhones sold in the U.S. will soon carry “Made in India” tags, as the tech giant works to mitigate the impact of escalating U.S.-China trade tensions.

Apple’s pivot to India, powered by partners like Foxconn and Tata, is part of a broader effort to diversify manufacturing after years of heavy reliance on China. Production in India surged last quarter, especially for U.S.-bound iPhones, according to Canalys.

Meanwhile, Vietnam has emerged as the main hub for iPads, Macs, AirPods, and Apple Watches, completing a regional production realignment.

“We cannot afford to have everything in one location,” Cook said, emphasizing that supply chain concentration is a long-term risk.

Growing pains ahead

Still, Apple faces operational hurdles in India, from infrastructure gaps to limited component availability. “There are unavoidable cost increases,” warned Jacob Bourne of eMarketer, adding that some may be passed on to consumers.

Despite challenges, Apple reported $95.4 billion in revenue and $25 billion in profit for the quarter — proof the tech giant remains strong, even while playing strategic defense.

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