Apple says most US-bound iPhones not made in China as tariffs chew

Apple says it’s shifting manufacturing of most iPhones and different units to be bought 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 shall be made in India, whereas Vietnam shall be a serious manufacturing hub for objects like iPads and Apple Watches, chief government Tim Cook dinner says.

It comes because the expertise big estimated that US import taxes may 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 corporations around the globe are scrambling to reply to 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 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 stated 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 count on nearly all of iPhones bought in US can have India as their nation of origin,” Mr Cook dinner stated.

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

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

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

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

“Apple have stated 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 USA, with the goal of persuading corporations 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 big whose outcomes had been being carefully watched for indicators of tariff harm, likewise stated gross sales had been holding up, rising 8% year-on-year in its North America e-commerce enterprise in the latest quarter.

It forecast comparable development within the months forward.

“Clearly no one in every 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 intervals of disruption – just like the pandemic – stronger than earlier than.

“We’re usually capable of 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 accordance with Patrick Moorhead, chief government of Moor Insights & Technique.

“This can be a marked change from what [Cook] stated just a few 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 but it surely’s a reasonably good begin,” he stated.

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

The corporate stated it working to ensure 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 damage by the tariff turmoil. If something, executives stated the enterprise could have benefited from some prospects beginning to stockpile.

General 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.