NEW DELHI: Apple CEO Tim Cook on Thursday said that the vast majority of its products are outside the purview of tariffs as they fall under the Section 232 investigation. Cook, while speaking during the Q3 FY2025 earnings call, also reiterated that the majority of iPhones sold in the US have India as their country of origin. His comments came despite US President Donald Trump having twice urged him not to manufacture or invest in India but in the US. Trump recently announced a 25% reciprocal tariff on Indian goods. However, Section 232 exempts products such as semiconductors and smartphones from these tariffs.
“In terms of the country of origin, it’s the same as I referenced last quarter. There hasn’t been a change to that, which is the majority of the iPhones sold in the U.S. have a country of origin of India, and the vast majority of other products, the Mac and the iPad and the Watch have a country of origin of Vietnam, that are sold in the United States,” said Cook.
For the June quarter, Apple reported revenue of $94.04 billion, a 10% year-on-year growth, while net profit came in at $23.42 billion, up 9.2% from a year ago.
On the 25% reciprocal tariff on Indian goods, which could impact India’s electronics manufacturing sector, including iPhone exports to the US, Cook said, “One thing I would say, just to remind everyone, is keep in mind that the vast majority of our products are covered under the Section 232 investigation.”
India’s exports to the US stood at $25.52 billion between April and June of the current financial year, registering nearly 23% growth compared to the same period last year. Bilateral trade between the two countries was $32.41 billion in Q1 FY25, while total trade so far this fiscal has crossed $86 billion, according to data from the Ministry of Commerce.
Cook also highlighted that Apple recorded a June-quarter high for iPhone sales, which grew 13% year-on-year. “We saw iPhone growth in every geographic segment and double-digit growth in emerging markets including India, the Middle East, South Asia, and Brazil,” he said.
He further noted that Apple plans to expand its retail footprint in India. “We recently launched the Apple Store online in Saudi Arabia, and we couldn’t be more excited to open new stores in the UAE and India later this year,” Cook said.