Lily Jamari
North American Technology Correspondent
Natalie Sherman
Business Reporter
Getty Images
Apple says it is shifting production of most iPhones and other devices sold in the US, away from China, the focus of President Donald Trump’s tariffs.
While the majority of iPhones bound to the US market in the coming months will be in India, Vietnam will be the main production hub for items like the iPad and Apple Watches, says Tim Cook.
This is because the tech giant estimated that the US import tax could add around $900 million (£677.5 million) to its costs this quarter despite Trump’s decision to spare key electronics from new tariffs.
The Trump administration has repeatedly said that Apple hopes to move production to the US.
This estimate is as companies all over the world are rushing to respond to the major changes in global trade caused by Washington’s trade policy.
In a call with investors on Thursday, Apple bosses appeared keen to draw attention to their investments in the US to discuss the company’s financial performance.
Cook opened the discussion, reminding him of the company’s plans to invest $500 million in several US over the next four years.
Made in India
He also said that Apple is moving its supply chain away from China for its products engaging in the US, but that India and Vietnam are the key beneficiaries of the move.
“We expect that the majority of iPhones sold in the US will have India as their country of origin,” Cook said.
Meanwhile, Vietnam is “the main manufacturing hub for almost all iPads, Macs, Apple Watches and Airpods products sold in the US.
China will remain the country of origin for most of the total products sold outside the US, he added.
However, moving the production line to India requires time and heavy investment, and costs billions of dollars.
Shanti Kelemen, chief investment officer at M&G Wealth, told the BBC’s Today program: [for Apple] And the costs of moving them and building a new factory.
“Apple says it wants to invest $500 million over the next few years.”
Apple’s shares plummeted after Trump announced that his administration would collect “mutual tariffs” on products imported to the US.
However, his administration faced great pressure to ease the plan. Shortly after customs duties came into effect, it announced that certain electronic devices, including telephones and computers, will be exempted.
Uncertainty reigns
For now, trade disruptions have left Apple’s sales unharmed.
The company said revenue for the first three months of the year rose to $95.4 billion, up 5% from the same period last year.
Similarly, sales have been rising, with North American e-commerce business rising 8% year-on-year in the most recent quarter, another tech giant Amazon, whose results were closely monitoring signs of tariff damage.
We are forecasting similar growth in the coming months.
“Obviously none of us know exactly where tariffs will settle, or when and where they will settle,” said Amazon boss Andy Jussey, but said the company has come from a time of stronger and more chaos than before, like the pandemic.
“We often get through situations that are more challenging than others,” he said. “I’m optimistic and this could happen again.”
New positioning
According to Patrick Moorhead, CEO of Moor Insights & Strategy, the shift in the iPhone supply chain to India was “impressive.”
“This is a significant change from what [Cook] I said a few years ago when he said only China could build an iPhone,” Moorehead said.
“There are a lot of progress Apple has to show here, but that’s a pretty good start,” he said.
Amazon is also repositioning itself to increase resilience in the face of tariffs.
The company said it worked to ensure there are diverse sellers, and Jussy said he felt the company was well positioned, pointing to the company’s scale and its role in providing everyday essentials.
For now, he said sales have not been hurt by tariff disruptions. If anything, management said the business may have benefited from some customers starting to stockpile.
In the first three months of 2025, total sales increased 9% from the same period last year to $155.7 billion, while profits rose more than 60% from the same period last year to about $17 billion.
