Apple Shifts iPhone Production from China to India Amid Trade Pressures

[Social Media]

 

Apple has announced a significant shift in its global manufacturing strategy, revealing that most iPhones and other key products destined for the United States will no longer be made in China. This move marks a major development in the company’s efforts to diversify its supply chain in response to trade tensions and mounting tariff pressures from the U.S. government.

 

According to Apple CEO Tim Cook, India is set to become the primary hub for iPhone production for the American market. “We do expect the majority of iPhones sold in [the] US will have India as their country of origin,” Cook told investors during a recent earnings call. Meanwhile, Vietnam is emerging as the central production site for a range of other Apple products, including iPads, Mac computers, Apple Watches, and AirPods. “Vietnam will be the chief manufacturing hub for almost all iPad, Mac, Apple Watch and AirPods product sold in the US,” Cook added.

 

This strategic reallocation of manufacturing operations appears to be a response to tariffs imposed under the administration of former President Donald Trump, which targeted products made in China. Although the Trump administration had long advocated for Apple to bring production back to the United States, the company has instead chosen to strengthen its presence in other Asian countries while making substantial investments on U.S. soil.

 

During the investor call, Cook highlighted Apple’s domestic economic contributions, beginning the discussion by reiterating the company’s plan to invest $500 billion across several U.S. states over the next four years. This commitment signals that while production may be shifting internationally, Apple remains focused on maintaining a significant economic footprint in America.

 

China, however, will not be entirely cut out of the equation. Cook confirmed that it will remain the main manufacturing source for Apple products sold outside the United States. “China will remain the country of origin for the vast majority of total products sold outside the US,” he noted.

 

Apple’s latest financial report reflects resilience in the face of geopolitical and trade uncertainties. The tech giant posted its highest March-quarter revenue in over two years, with sales rising 5% to $95 billion. Net income climbed to $24.8 billion, up nearly 5% compared to the same quarter last year. Analysts attributed part of this growth to consumers rushing to purchase Apple products before new tariffs took effect in April, as well as strong demand for the newly launched iPhone 16e — a lower-end model featuring limited artificial intelligence capabilities.

 

Industry experts have been watching Apple’s manufacturing shift closely. Patrick Moorhead, CEO of Moor Insights & Strategy, called the company’s production move “impressive,” especially given previous remarks by Tim Cook that only China had the infrastructure to build iPhones. “This is a marked change from what [Cook] said a few years back when he said that only China can build iPhones,” Moorhead said. “There is lots of progress that Apple must show here but it's a pretty good start.”

 

Other tech giants are also navigating the evolving trade landscape. Amazon, for instance, has managed to weather the tariff storm, reporting an 8% increase in sales year-on-year in its North American e-commerce business. Overall, Amazon’s sales rose 9% to $155.7 billion in the first quarter of 2025, with profits soaring more than 60% to approximately $17 billion. Company executives even suggested that consumer stockpiling in anticipation of tariffs may have contributed to the strong numbers.

 

  Adpated by ASEAN Now from BBC  2025-05-03