Apple CEO Cook: The country of origin for most iPhones sold in the U.S. will be India.

Apple reported first-quarter profits higher than expected on Thursday, but warned that U.S. tariffs could result in losses and disrupt its supply chain. Apple CEO Tim Cook stated during the earnings conference call that although the impact of U.S. tariffs earlier this year was "limited," Apple expects an additional cost increase of $900 million for this quarter.

Cook stated that it is expected "that the country of origin for most iPhones sold in the U.S. will be India," and noted that Apple's products are temporarily unaffected by the Trump administration's harshest "reciprocal" tariffs.

"We cannot accurately estimate the impact of tariffs because we are not sure what actions may be taken in the future before the end of this quarter. Assuming that current global tariff rates, policies, and applications remain unchanged and no new tariffs are added during the remainder of this quarter, we estimate that its impact will increase our costs by $900 million," said Cook. High-end technology products such as smartphones, semiconductors, and computers are currently temporarily exempt from U.S. tariffs.

Analyst Jason Low from independent market research firm Canalys pointed out: "Before the anticipated tariff policy takes effect, Apple proactively built up inventory. With the ongoing fluctuations in the 'reciprocal' tariff policy, Apple is likely to further shift production targeted at the U.S. market to India to reduce future risk exposure."

Data from Canalys shows that although iPhones produced in mainland China still account for the majority of U.S. shipments, production in India increased by the end of this quarter.

Cook stated that Vietnam will become the origin of almost all iPads, Macs, Apple Watches, and AirPods sold in the U.S., while also insisting that China will remain the production location for the majority of Apple's products sold outside the U.S.

The above financial report showed that Apple's revenue reached $95.4 billion in the just-concluded quarter, mainly due to iPhone sales, with revenue in the Chinese market reaching $17 billion. The quarterly profit was $24.8 billion. Apple's stock price fell more than 3% in after-hours trading.

Analyst Bernie from independent market research company Emarketer commented: "The real story lies in Cook's plan to address these unprecedented trade challenges."

Bernie added that Apple's plan to transfer production to India raises urgent questions about the timeline for execution, capacity constraints, and potential unavoidable cost increases, which could reduce profits, pass them on to consumers, or lead to a series of consequences.

Source: rfi

Original article: https://www.toutiao.com/article/1831020371512324/

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