Apple Inc. has made a major change to its production strategy, announcing that the majority of iPhones and other devices intended for the US market will no longer be produced in China. Instead, India and Vietnam will become the primary hubs for manufacturing iPhones, iPads, Apple Watches, and other key products.
This decision comes amid rising costs due to tariffs imposed under former President Donald Trump’s trade policies. Apple estimates that these duties could add nearly $900 million to its expenses for the current quarter.
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Tim Cook, Apple’s CEO, disclosed the shift during a quarterly earnings call with investors, highlighting the company’s effort to diversify its supply chain amid growing trade tensions between the US and China.
Cook confirmed that most iPhones sold in the US would be made in India, while Vietnam would take the lead in manufacturing products like iPads, MacBooks, Apple Watches, and AirPods for the US market. China will continue to produce Apple products for markets outside the US.
This transition marks a significant departure from Apple’s long-time reliance on Chinese manufacturing. Industry experts see this move as a noteworthy shift, considering that Cook previously argued only China could produce iPhones effectively. The change reflects broader challenges that global companies face as they adapt to a volatile international trade environment.
Apple’s shift comes at a time when global firms are adjusting to the pressures of trade policy and tariff implications. Although Apple’s stock initially dropped following tariff announcements, the company maintained steady financial growth, with revenues for the first quarter of 2025 rising 5% year-over-year, reaching $95.4 billion.
Cook also emphasized Apple’s continued investments in the US, revealing plans to inject $500 billion into various states over the next four years, signaling a balanced approach to its global manufacturing strategy while also fulfilling domestic commitments.
