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

Apple says it’s shifting manufacturing of most iPhones and different gadgets to be offered within the US away from China, which has been the main target of President Donald Trump’s tariffs.

The vast majority of the iPhones sure for the US market within the coming months will likely be made in India, whereas Vietnam will likely be a serious manufacturing hub for gadgets like iPads and Apple Watches, chief govt Tim Cook 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 mentioned it desires Apple to maneuver manufacturing to America.

The estimate comes as corporations world wide are scrambling to answer the massive shifts in world 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 mentioned 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 anticipate nearly all of iPhones offered in US may 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 outdoors the US, he added.

Apple shares had plummeted after Trump introduced his administration would levy “reciprocal tariffs” on merchandise imported to america, with the purpose of persuading corporations to fabricate extra within the US.

However his administration confronted important stress to average 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 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 large 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 in every of 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 durations of disruption – just like the pandemic – stronger than earlier than.

“We’re usually 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” in line with Patrick Moorhead, chief govt of Moor Insights & Technique.

“It is a marked change from what [Cook] mentioned a number 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 however it’s a reasonably good begin,” he mentioned.

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

The corporate mentioned it working to verify 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 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 earnings surged greater than 60% year-on-year to roughly $17bn.