• Apple anticipates $900 million in costs due to US tariffs in the current quarter.
• Tim Cook announced the majority of US-bound iPhones will be sourced from India.
• Apple's revenue for the recent quarter was $95.4 billion, driven largely by iPhone sales.
• Despite a tariff reprieve for smartphones, broader trade tensions continue to affect sales.
• Vietnam will become the primary production hub for iPads, Macs, and other devices for the US market.

Apple's CEO Tim Cook announced that the company expects US tariffs to cost approximately $900 million in the current quarter as it shifts production of iPhones bound for the US from China to India. Despite the initial impact being “limited” at the start of the year, the situation has become more complex due to ongoing trade tensions, with Cook noting uncertainty around future tariff policies. The move aims to mitigate the effects of tariffs that threaten Apple's supply chain and pricing strategies, according to SCMP and Channel News Asia.

Cook emphasized that although most iPhones sold in the US would be manufactured in India, Apple’s products were, for the moment, exempt from the most severe reciprocal tariffs enforced by the Trump administration. He explained that the company had to remain agile in its production strategy, building inventory ahead of anticipated tariff policy shifts. Analyst Le Xuan Chiew from Canalys highlighted that Apple had proactively ramped up its production in India, projecting most iPhones sold in the US to originate from there by June, according to India Times and India Times.

In financial terms, Apple reported a revenue of $95.4 billion for the recently ended quarter, alongside a profit of $24.8 billion. The ongoing challenges in the market were reflected in a 3% drop in Apple’s sales within China, attributed to heightened local competition and the fallout from US tariffs. Domestic brands like Xiaomi and Huawei continue to increase their market share, accentuating the tension Apple faces in balancing production and sales between China and India, reported SCMP and BBC.

As part of its adaptation to the shifting economic landscape, Cook stated that Vietnam will also serve as a manufacturing base for iPads, Macs, AirPods, and Apple Watches sold in the US. The company is restructuring its sourcing strategy to avoid potential retail price increases associated with Chinese tariffs, demonstrating a clear pivot towards diversifying its supply chains. Apple's ability to navigate these challenges reflects broader economic trends in global trade, as tensions between the US and China escalate. This strategic response has raised discussions about further risk management in the event of continued trade volatility, according to The Jakarta Post and Dawn.