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Apple has announced that it will relocate most of its iPhone and device production for the US market from China to India, in response to shifting trade policies and tariff pressures.
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CEO Tim Cook revealed that going forward, the majority of iPhones destined for American consumers will be manufactured in India. Meanwhile, Vietnam is set to become a central production hub for products like iPads, Apple Watches, Macs, and AirPods.
This move comes as Apple braces for an estimated $900 million increase in costs this quarter due to US import tariffs, even though key electronics have been temporarily exempted.
During an investor call on Thursday, Cook highlighted Apple’s ongoing investment in the US, including a planned $500 billion injection into various American states over the next four years.
While the company is shifting its US-bound supply chain to India and Vietnam, Cook noted that China will continue to be the main manufacturing base for Apple products sold outside the US.
Apple’s decision reflects a broader global trend, with businesses reacting to major disruptions in international trade triggered by US policy. The Trump administration has consistently urged companies like Apple to bring manufacturing back to American soil.
Despite the trade tensions, Apple reported a 5% increase in revenue to $95.4 billion for the first quarter, compared to the same period last year.
Other tech giants like Amazon also appear to be weathering the uncertainty well. Amazon posted a 9% rise in quarterly sales to $155.7 billion, with profits jumping more than 60% to around $17 billion. CEO Andy Jassy stated that the company remains resilient and is taking steps to diversify its sellers to better handle the evolving trade environment.
Patrick Moorhead, CEO of Moor Insights & Strategy, called Apple’s move to shift its iPhone production to India “a major shift,” noting that it marks a departure from previous claims that only China had the capacity to handle such complex manufacturing.
Although challenges remain, industry analysts see the relocation as a strong start in Apple’s effort to reduce its dependence on China.
