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 can be made in India, whereas Vietnam can be a significant manufacturing hub for gadgets like iPads and Apple Watches, chief govt 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 determination 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 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 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 might be poised to be main beneficiaries of that transfer.

“We do count on nearly all of iPhones offered in US can 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 exterior the US, he added.

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

Shanti Kelemen, chief funding officer at M&G Wealth, advised the BBC’s At the moment programme: “There’ll nonetheless be tariffs that affect the provision 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 america, with the goal of persuading firms to fabricate extra within the US.

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

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

The corporate mentioned 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 have been being carefully watched for indicators of tariff injury, likewise mentioned 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 progress within the months forward.

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

“We’re typically in a position to 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” based on Patrick Moorhead, chief govt of Moor Insights & Technique.

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

“There may be a lot of progress that Apple should present right here but it surely’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 ensure it had a range 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 function supplying on a regular basis necessities.

For now, it mentioned gross sales had not been damage 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 yr, whereas income surged greater than 60% year-on-year to roughly $17bn.