Apple Inc. has announced a significant shift in its production strategy, revealing that most iPhones and other devices destined for the US market will no longer be manufactured in China.
Instead, India and Vietnam will become the primary manufacturing hubs for iPhones and other key Apple products such as iPads and Apple Watches.
The move comes as the US tech giant faces mounting cost pressures stemming from tariffs imposed under former President Donald Trump's trade policies. Despite exemptions granted to certain electronics, Apple estimates that import duties could still add nearly $900 million to its costs in the current quarter alone.
Chief Executive Tim Cook made the announcement during a quarterly earnings call with investors, underscoring the company’s broader efforts to diversify its supply chain in the wake of escalating trade tensions between Washington and Beijing.
“We do expect the majority of iPhones sold in the US will have India as their country of origin,” Mr Cook said. He added that Vietnam will take the lead in manufacturing “almost all iPad, Mac, Apple Watch and AirPods products sold in the US.”
However, China will continue to serve as the primary manufacturing base for Apple products intended for markets outside the United States.
The transition marks a notable departure from Apple’s longstanding reliance on Chinese manufacturing, which Mr Cook once described as indispensable. Industry analysts say the pivot is significant, not just for Apple, but for global supply chains. “This is a marked change from what [Cook] said a few years back when he said that only China can build iPhones,” said Patrick Moorhead, chief executive of Moor Insights & Strategy.
Apple’s announcement comes as global firms struggle to adjust to the volatile landscape of international trade. The Trump administration had repeatedly called on US firms like Apple to bring manufacturing back to America, using tariffs as leverage. While Apple shares initially tumbled following the tariff announcements, the government later softened its stance by exempting key electronics from the duties.
Despite the turbulence, Apple reported steady financial performance. Revenues for the first quarter of 2025 rose 5 percent year-on-year, reaching $95.4 billion.
Cook also used the earnings call to highlight Apple’s continued investment in the US, noting plans to inject $500 billion across several states over the next four years—a signal that the company is balancing its global production strategy with domestic commitments.
Meanwhile, Amazon, another tech giant closely watched for signs of tariff impact, said its North America e-commerce business grew by 8 percent in the last quarter. The company posted overall revenues of $155.7 billion—up 9 percent year-on-year—while profits surged more than 60 percent to nearly $17 billion.
“Obviously, no one of us knows exactly where tariffs will settle or when,” Amazon Chief Executive Andy Jassy told investors. “We’re often able to weather challenging conditions better than others.”
Jassy said Amazon was actively working to diversify its seller base and pointed to the company's scale and product range as key strengths in navigating uncertain times.
