Apple has started shifting the production of most iPhones and other popular devices for the US market away from China. This change comes as Apple looks to avoid extra costs from US import taxes and adapt to global trade tensions.
According to CEO Tim Cook, most of the iPhones sold in the US in the coming months will now be made in India. Meanwhile, Vietnam will become the main production hub for iPads, Macs, Apple Watches and AirPods. Although China will still produce most Apple products for markets outside the US, this move marks a big shift in Apple’s global supply chain.
Apple made this change partly to respond to rising tariffs and trade tensions under the US government’s recent policies. The company estimates that these taxes could cost Apple up to $900 million in the current quarter. However, after pressure from major companies, the US government decided to exempt some electronics, including phones and computers, from the new tariffs.
On a recent investor call, Tim Cook emphasized Apple’s long-term commitment to the US economy, mentioning plans to invest $500 billion across several US states over the next four years.
Apple’s production changes also come during a time of global supply chain reshuffling. Many companies, including Amazon, are adjusting their operations to become more resilient in the face of trade disruptions.
Despite the uncertainty, Apple’s sales remain strong. Revenue for the first quarter of 2025 rose 5% year-over-year to $95.4% billion. Industry experts praised the move to India as a bold shift. A few years ago, Apple stated that only China could build iPhones, but that stance is now changing.
Amazon, too, reported strong results. North American sales rose 8%, and total global sales increased 9% to $155.7% billion in the first quarter of 2025, with profits jumping over 60% year-over-year to around $17 billion. The company is expanding its seller base to stay strong against future trade challenges.
Both tech giants are showing how adapting supply chains can help reduce risks while keeping business growth on track.
By
