Apple confirmed a major strategic shift in its manufacturing operations, announcing that the majority of iPhones and other devices destined for the United States would no longer be produced in China.
The company said India and Vietnam would now take on a larger role in its global supply chain, with Apple Chief Executive Tim Cook noting that this transition reflected both geopolitical factors and long-term investment plans.
During a recent earnings call, Cook stated: “We do expect the majority of iPhones sold in US will have India as their country of origin.”
He added that Vietnam would become the chief production base for most iPads, Macs, Apple Watches, and AirPods bound for the US. Despite this transition, China would continue to manufacture the majority of Apple’s products intended for markets outside the United States.
The decision followed escalating trade tensions between the US and China, with import duties introduced during Donald Trump’s presidency placing pressure on companies with supply chains rooted in China. Apple estimated that these tariffs could increase its costs by approximately $900million (£677.5million) in the current quarter alone, even after exemptions for key consumer electronics such as phones and computers were introduced.
The Trump administration did introduced a significant reprieve for technology imports, granting tariff exclusions on a range of electronic goods – including smartphones, computers, and semiconductor devices – largely manufactured in China. The move temporarily shields these products from the steep 125% reciprocal tariffs imposed on Chinese imports, offering a degree of relief to major US technology firms.
However, US Commerce Secretary Howard Lutnick recently suggested the reprieve would be short-lived. Speaking during an interview with ABC’s This Week, Lutnick confirmed that while certain products had been temporarily spared from existing tariffs, new semiconductor-focused duties were under consideration and could be introduced within the next two months.
President Trump has urged Apple to bring manufacturing to the US and Cook highlighted the company’s broader American investment strategy. He opened the investor call with a reminder of Apple’s commitment to inject $500 billion into the US economy over the next four years through various state-level investments.
Relocating production lines to India, however, would require substantial capital outlay, with the company expecting the process to cost billions of dollars over time.
Apple also announced its financial results for its fiscal second quarter ending 29th March 2025. The company reported quarterly revenue of $95.4 billion, marking a 5% increase year on year, with diluted earnings per share rising 8% to $1.65.
