Apple Moves Our iPhone Production from China to India
Apple has a strategy to avoid President Trump’s sudden tariffs in China. It’s about making more iPhones in India. Sources told Reuters that the tech giant is in urgent talks with manufacturers Foxconn and Tata with the goal of producing most of its mobile phones in the US in India by the end of 2026.
Apple reported $95.4 billion in revenue, addressing tariff concerns during the announcement of revenue, and called on May 1.
“President Donald Trump’s tariff system had a limited impact in the March quarter due to supply chain and inventory optimization.”
Cook warned that the trade environment could change, but he pointed out that tariffs would affect the next quarter.
“We assume that our current global tariff charges, policies and applications will not change against our quarterly balances and estimate the impact of adding $900 million to our costs if no new tariffs are added,” Cook said.
In an analyst question, Cook said that “building a manufacturing purchase obligation” was part of a unique factor that could benefit the company in the June quarter. He said it is “hard to predict” the impact on tariffs and other policies after the June quarter.
Apple’s CFO Kevan Parekh added that the statement assumes that the global macroeconomics will not deteriorate, and that the company expects revenue to rise at a low to mid-digit percentage in the third quarter.
Cook said he does not believe he saw evidence to advance demand in March ahead of the April 2nd tariffs.
He also points to plans to promote expansions in the US and spend $500 billion over the next four years to expand facilities in multiple states.
Apple Services reached high and most products have grown
The tech giant said service revenues exceeded $26.6 billion were a record high, up 12% year-on-year.
The company also reported that earnings per share was $1.65, an 8% increase from the previous year, with a record for the March quarter. The revenue figures also increased by 5% from the previous year.
“Thanks to our high levels of customer loyalty and satisfaction, our active device installation base has reached a new all-time high across all product categories and geographic segments,” Parekh said in a revenue release.
The company reported in its financial statements:
- iPhone revenues increased by 2% to $46.8 billion.
- Mac Revenue is $7.9 billion, up 7%
- iPad revenues increased by 15% to $6.4 billion
- Wearables, Homes and Accessories revenue fell by $7.5 billion, 5%
Parkeh said in a call that the company had a net cash position of $35 billion and had allowed $100 billion in share buybacks.