Apple says most US-bound iPhones no longer made in China as tariffs bite

Apple says it’s shifting manufacturing of most iPhones and different gadgets to be offered within the US away from China, which has been the main focus of President Donald Trump’s tariffs.

The vast majority of the iPhones sure for the US market within the coming months might be made in India, whereas Vietnam might be a significant manufacturing hub for objects like iPads and Apple Watches, chief govt Tim Cook dinner says.

It comes because the know-how large estimated that US import taxes might add about $900m (£677.5m) to its prices within the present quarter, regardless of Trump’s choice to spare key electronics from the brand new tariffs.

The Trump administration has repeatedly mentioned it desires Apple to maneuver manufacturing to America.

The estimate comes as corporations world wide are scrambling to answer the large shifts in international commerce triggered by Washington’s commerce insurance policies.

On a name with traders on Thursday to debate the agency’s monetary efficiency, the Apple boss appeared eager to attract consideration to its investments within the US.

Mr Cook dinner opened the dialogue with a reminder of the corporate’s plans to speculate $500bn throughout a number of US states over the following 4 years.

He additionally mentioned Apple is shifting its provide chain for US-bound merchandise away from China, however it’s India and Vietnam which can be poised to be main beneficiaries of that transfer.

“We do anticipate nearly all of iPhones offered in US may have India as their nation of origin,” Mr Cook dinner mentioned.

In the meantime, Vietnam would be the chief manufacturing hub “for nearly all iPad, Mac, Apple Watch and AirPods product offered within the US”.

China will stay the nation of origin for the overwhelming majority of complete merchandise offered outdoors the US, he added.

Nevertheless shifting manufacturing strains to India will take time and vital funding, costing billions of {dollars}.

Shanti Kelemen, chief funding officer at M&G Wealth, advised the BBC’s Right this moment programme: “There’ll nonetheless be tariffs that affect the availability chains [for Apple] and a value to maneuver them and construct new factories.

“Apple have mentioned they need to make investments $500bn over the following few years.”

Apple shares had plummeted after Trump introduced his administration would levy “reciprocal tariffs” on merchandise imported to the US, with the purpose of persuading firms to fabricate extra within the US.

However his administration confronted vital stress to reasonable its plans. Shortly after the tariffs went into impact, it introduced that sure electronics, together with telephones and computer systems, could be exempted.

For now, commerce turmoil has left Apple’s gross sales unscathed.

The corporate mentioned revenues for the primary three months of the 12 months rose 5% from the identical interval final 12 months, to $95.4bn.

Amazon, one other tech large whose outcomes have been being intently watched for indicators of tariff harm, likewise mentioned gross sales have been holding up, rising 8% year-on-year in its North America e-commerce enterprise in the latest quarter.

It forecast related progress within the months forward.

“Clearly no certainly one of us is aware of precisely the place tariffs will settle or when,” mentioned Amazon boss Andy Jassy, whereas noting that the agency has emerged from durations of disruption – just like the pandemic – stronger than earlier than.

“We’re usually capable of climate difficult situations higher than others,” he mentioned. “I am optimistic this might occur once more.”

The shift of the iPhone provide chain to India was “spectacular” in accordance with Patrick Moorhead, chief govt of Moor Insights & Technique.

“It is a marked change from what [Cook] mentioned just a few years again when he mentioned that solely China can construct iPhones,” Mr Moorhead mentioned.

“There may be a number of progress that Apple should present right here nevertheless it’s a fairly good begin,” he mentioned.

Amazon can be repositioning itself to extend resilience within the face of the tariffs.

The corporate mentioned it working to verify it had a variety of sellers and Mr Jassy mentioned he felt the agency was well-positioned for the months forward, pointing to the agency’s scale and its position supplying on a regular basis necessities.

For now, it mentioned gross sales had not been harm by the tariff turmoil. If something, executives mentioned the enterprise might have benefited from some clients beginning to stockpile.

Total gross sales jumped 9% to $155.7bn within the first three months of 2025, in contrast with the identical interval final 12 months, whereas earnings surged greater than 60% year-on-year to roughly $17bn.