Apple says it is shifting production of most iPhones and other devices to be sold in the US away from China, which has been the focus of President Donald Trump’s tariffs.
The majority of the iPhones bound for the US market in the coming months will be made in India, while Vietnam will be a major production hub for items like iPads and Apple Watches, chief executive Tim Cook says.
It comes as the technology giant estimated that US import taxes could add about $900m (£677.5m) to its costs this quarter, despite Trump’s decision to spare key electronics from the new tariffs.
The Trump administration has repeatedly said it wants Apple to move production to America.
The estimate comes as firms around the world are scrambling to respond to the huge shifts in global trade triggered by Washington’s trade policies.
On a call with investors on Thursday to discuss the firm’s financial performance, the Apple boss seemed keen to draw attention to its investments in the US.
Mr Cook opened the discussion with a reminder of the company’s plans to invest $500bn across several US states over the next four years.
Made in India
He also said Apple is shifting its supply chain for US-bound products away from China, but it is India and Vietnam that are poised to be major beneficiaries of that move.
“We do expect the majority of iPhones sold in US will have India as their country of origin,” Mr Cook said.
Meanwhile, Vietnam is expected to be the chief manufacturing hub “for almost all iPad, Mac, Apple Watch and AirPods product sold in the US.”
China will remain the country of origin for the vast majority of total products sold outside the US, he added.
Apple shares had plummeted after Trump announced his administration would levy “reciprocal tariffs” on products imported to the United States, with the aim of persuading companies to manufacture more in the US.
But the administration faced significant pressure to moderate its plans. Shortly after the tariffs went into effect, it announced that certain electronics, including phones and computers, would be exempted.
Uncertainty reigns
For now, trade turmoil has left Apple’s sales unscathed.
The company said revenues for the first three months of the year rose 5% from the same period last year, to $95.4bn.
Amazon, another tech giant whose results were being closely watched for signs of tariff damage, likewise said sales were holding up, rising 8% year-on-year in its North America e-commerce business in the most recent quarter.
It forecast similar growth in the months ahead.
“Obviously no one of us knows exactly where tariffs will settle or when,” said Amazon boss Andy Jassy, while noting that the firm has emerged from periods of disruption – like the pandemic – stronger than before.
“We’re often able to weather challenging conditions better than others,” he said. “I’m optimistic this could happen again.”
New positioning
The shift of the iPhone supply chain to India was “impressive” according to Patrick Moorhead, chief executive of Moor Insights & Strategy.
“This is a marked change from what [Cook] said a few years back when he said that only China can build iPhones,” Mr Moorhead said.
“There is lots of progress that Apple must show here but it’s a pretty good start,” he said.
Amazon is also repositioning itself to increase resilience in the face of the tariffs.
The company said it working to make sure it had a diversity of sellers and Mr Jassy said he felt the firm was well-positioned for the months ahead, pointing to the firm’s scale and its role supplying everyday essentials.
For now, it said sales had not been hurt by the tariff turmoil. If anything, executives said the business may have benefited from some customers starting to stockpile.
Overall sales jumped 9% to $155.7bn in the first three months of 2025, compared with the same period last year, while profits surged more than 60% year-on-year to roughly $17bn.
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