Apple CEO Tim Cook announced that tariffs are expected to add a hefty $900 million to the company’s costs in the upcoming quarter. This news surfaced during Apple’s second-quarter 2025 earnings call, shedding light on how international trade policies are impacting one of the world’s leading tech companies.
“For the June quarter, we expect most of the iPhones sold in the U.S. will be manufactured in India,” Cook revealed to analysts. This indicates a significant shift in Apple’s production strategy, as the company looks to diversify its manufacturing bases.
Even with these changes, the Chinese mainland remains a vital market for Apple products outside the U.S. “Our focus on serving customers in the Chinese mainland is unwavering,” Cook emphasized.
Apple shares dipped by 4% in after-hours trading following reports that sales in the Chinese mainland had declined compared to the same period last year. This dip underscores the challenges Apple faces amid fluctuating trade relations and market dynamics.
The company’s move to expand production in India reflects broader trends of global companies adapting to changing trade policies and seeking resilience in their supply chains. For young consumers, this could mean seeing “Made in India” labels on their new iPhones, and potential shifts in product pricing.
As Apple navigates these complexities, the developments serve as a reminder of how global trade policies can have direct effects on the technology we use every day.
