Apple Shifts iPhone Production to India, Vietnam
News Desk
Islamabad: Apple Inc. has unveiled a major shift in its manufacturing strategy, announcing that most iPhones and other devices bound for the U.S. will no longer be produced in China. Instead, India and Vietnam will become the main production hubs for key Apple products, including iPhones, iPads, and Apple Watches.
The move comes as the company contends with rising costs linked to tariffs introduced during former President Donald Trump’s administration. Although some electronics remain exempt, Apple estimates that import duties could still raise its costs by nearly $900 million this quarter alone.
CEO Tim Cook shared the update during Apple’s quarterly earnings call, highlighting the company’s broader plan to diversify its supply chain amid ongoing trade tensions between the U.S. and China.
“We expect the majority of iPhones sold in the U.S. to be made in India,” Cook said. He also noted that Vietnam will take the lead in producing nearly all iPads, Macs, Apple Watches, and AirPods sold in the U.S.
Despite the shift, China will remain the main production center for Apple products destined for markets outside the United States.
This move marks a significant departure from Apple’s historic dependence on Chinese manufacturing. Cook had previously referred to China’s role in Apple’s supply chain as essential. Industry experts say the decision reflects a broader transformation in global supply chains.
“It’s a major change, especially considering Cook’s earlier stance that only China could build iPhones,” said Patrick Moorhead, CEO of Moor Insights & Strategy.
The announcement comes at a time when global companies are grappling with the uncertainties of international trade. The Trump administration had urged U.S. firms like Apple to repatriate manufacturing jobs, leveraging tariffs to encourage the shift. While Apple shares initially dipped following tariff news, later exemptions for some electronics helped stabilize the situation.
Nonetheless, Apple reported solid financial results. First-quarter revenue for 2025 rose 5% year-over-year to $95.4 billion.
Cook also emphasized Apple’s ongoing investment in the U.S., revealing plans to invest $500 billion across several states over the next four years—a sign of the company’s effort to balance international production with domestic growth.
Meanwhile, Amazon also posted strong results, with North American e-commerce sales rising 8% last quarter. The company’s total revenue reached $155.7 billion, up 9% from the previous year, while profits soared over 60% to nearly $17 billion.
“No one knows exactly where tariffs will land or when,” said Amazon CEO Andy Jassy. “But we tend to navigate tough conditions better than most.” Jassy added that Amazon is working to diversify its seller base and continues to rely on its scale and product variety to stay resilient.
