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 units to be offered within the US away from China, which has been the main target of President Donald Trump’s tariffs.

Nearly all of the iPhones certain for the US market within the coming months shall be made in India, whereas Vietnam shall be a significant manufacturing hub for objects like iPads and Apple Watches, chief government Tim Prepare 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 resolution to spare key electronics from the brand new tariffs.

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

The estimate comes as companies all over the world are scrambling to answer the massive shifts in international commerce triggered by Washington’s commerce insurance policies.

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

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

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

“We do anticipate the vast majority of iPhones offered in US could have India as their nation of origin,” Mr Prepare dinner stated.

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 exterior the US, he added.

Nonetheless transferring manufacturing traces 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 provision chains [for Apple] and a price to maneuver them and construct new factories.

“Apple have stated they wish 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 america, with the purpose of persuading firms to fabricate extra within the US.

However his administration confronted vital strain 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 stated revenues for the primary three months of the yr rose 5% from the identical interval final yr, to $95.4bn.

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

It forecast comparable development within the months forward.

“Clearly no considered one of us is aware of precisely the place tariffs will settle or when,” stated 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 in a position to climate difficult circumstances higher than others,” he stated. “I am optimistic this might occur once more.”

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

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

“There’s plenty of progress that Apple should present right here however it’s a fairly good begin,” he stated.

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

The corporate stated it working to verify it had a variety of sellers and Mr Jassy stated 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 stated gross sales had not been harm by the tariff turmoil. If something, executives stated the enterprise could have benefited from some prospects 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 yr, whereas income surged greater than 60% year-on-year to roughly $17bn.