Catenaa, Tuesday, May 06, 2024-Apple has begun shifting production of most iPhones bound for the US away from China, with India and Vietnam emerging as key alternatives, CEO Tim Cook announced Thursday.
The move follows mounting tariff pressures from the Trump administration and is part of Apple’s broader strategy to reduce its dependence on Chinese manufacturing.
The majority of iPhones sold in the US in the coming months will originate from India, while Vietnam will handle most US-bound production of iPads, Mac computers, Apple Watches and AirPods.
Cook said the shift aligns with Apple’s pledge to invest $500 billion across several US states over the next four years.
Apple warned that import duties could cost the firm nearly $900 million this quarter, despite exemptions for some electronics.
The Trump administration has urged Apple to repatriate more of its manufacturing footprint, but the tech giant’s pivot to other Asian nations suggests a different path.
While production realignment demands billions in investment and time, Apple’s move signals a long-term strategy to hedge against US-China trade tensions. China will still manufacture the bulk of Apple’s products for markets outside the US, Cook confirmed.
Despite the geopolitical friction, Apple’s revenue rose 5% year-on-year to $95.4 billion in the first quarter. Amazon, facing similar challenges, reported an 8% rise in North American e-commerce sales, reflecting broader resilience among US tech giants.
Executives from both firms expressed cautious optimism as tariff uncertainty persists, with Amazon CEO Andy Jassy highlighting the company’s adaptability during periods of global disruption.
