Apple has announced a significant shift in its manufacturing strategy, moving much of its iPhone production away from China to India, amid ongoing trade tensions and tariffs introduced by President Donald Trump’s administration.
The move aims to reduce the company’s exposure to costly US import taxes, which Apple estimates could increase costs by $900 million this quarter.
Apple CEO Tim Cook confirmed that the majority of iPhones destined for the US will soon originate from India, while Vietnam will become the primary production hub for devices like iPads, MacBooks, Apple Watches, and AirPods.
This realignment reflects a broader effort to diversify Apple’s supply chain in response to escalating US-China trade disputes.
Cook also highlighted Apple’s commitment to investing $500 billion in the US over the next four years, signaling efforts to balance global operations with domestic economic contributions.
Despite pressure from the Trump administration to move more manufacturing to the US, Apple has opted for India and Vietnam due to their growing industrial capacity and lower labor costs.
Experts note that while the transition to new manufacturing centers will be costly and time-consuming, it could reduce future vulnerabilities to geopolitical friction.
“This marks a major shift from Apple’s earlier stance that only China could handle iPhone production,” said analyst Patrick Moorhead.
Meanwhile, Apple reported a 5% year-on-year revenue increase to $95.4 billion, indicating that trade turmoil has yet to hurt its bottom line.
Amazon also reported robust results, with a 9% sales jump and profits up 60%—underscoring tech giants’ resilience amid global economic uncertainty.
