Apple just reported its latest quarterly earnings, and as expected, CEO Tim Cook came prepared to discuss the US tariff situation. In a new CNBC article, Cook explains why Apple isn’t worried about potential tariff impacts on the iPhone and its other products.
Apple’s China reliance for US products is less than widely thought, per Cook’s comments
Cook told CNBC that Apple is already sourcing about half of the iPhones for the U.S. from India, and most of its other products for the U.S. from Vietnam, where tariffs are lower than they are from China. Apple still makes the “vast majority” of its products for other countries from China, Cook said.
“If you look at the U.S., over half of the U.S. sales of iPhone come from India,” Cook said. “If you look at the other products, Mac and iPad and AirPods and the Watch, almost all of the country of origin is Vietnam.”
Currently, Apple has been spared any major impact from potential US tariffs thanks to exemptions for smartphones, computers, and related tech.
However, there has continued being uncertainty—especially on Wall Street—around future tariffs.
Cook’s comments seem to be aimed at reassuring investors that Apple is on top of things.
If half of US iPhones are already coming from India, and Apple’s other major products are sourced from Vietnam, Apple can avoid the worst impact of the current US and China trade disputes.
Additionally, reporting has indicated Apple hopes to get all of its US iPhones from India by 2027—not too far in the future.
Apple’s CEO will surely field more tariff questions on the company’s earnings call, but for now, the outlook for the company seems positive.
What do you make of Cook’s comments on Apple’s iPhone risk with tariffs? Let us know in the comments.
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