Apple says most American iPhoni is no longer being made in China as tariffs bite

Apple says it displaces the production of most iPhone and other devices to be sold in the United States away from China, which is the focus of President Donald Trump’s tariffs.

The bigger part of the iPhone related to the US market in the coming months will be made in India, while Vietnam will be a major production center for items such as iPad and Apple Watches, says CEO Tim Cook.

It comes as the technological giant estimates that US import taxes can add about $ 900 million (£ 677.5 million) to their costs in the current quarter, despite Trump’s decision to separate key electronics from new rates.

The Trump administration has repeatedly said that it wants Apple to move production to America.

The assessment comes as companies around the world are confronted with responding to the huge changes to global trade caused by Washington’s commercial policies.

When calling with investors on Thursday, discussing the financial results of the company, Apple’s boss seemed to be willing to draw attention to his investment in the United States.

Cook has discovered the discussion reminding the company’s plans to invest $ 500 billion in several US states over the next four years.

He also said that Apple was displacing the supply chain for American products away from China, but India and Vietnam are ready to be the main beneficiaries of this move.

“We expect that the bigger part of the iPhone sold in the United States will have India as their country of origin,” said G -H Cook.

Meanwhile, Vietnam will be the Chief Manufacturing Center “For almost all iPad, Mac, Apple Watch and AirPods products sold in the US.”

China will remain the country of origin for the bigger part of the common products sold outside the United States, he added.

However, moving production lines to India will take time and significant investments that cost billions of dollars.

Shanti Kelemen, Chief Investment Officer of M&G Wealth, told the BBC Today program: “There will still be rates to affect the supply chains (for Apple) and the cost of moving them and building new factories.

“Apple said they wanted to invest $ 500 billion over the next few years.”

Apple’s shares decreased after Trump announced that his administration would impose “reciprocal tariffs” on products imported into the United States in order to persuade companies to produce more in the United States.

But his administration was confronted with considerable pressure to seize its plans. Shortly after the entry into force of the tariffs, she announced that some electronics, including phones and computers, would be released.

So far, Trade Turmoil has left Apple sales unharmed.

The company said revenue for the first three months of the year increased by 5% compared to the same period last year to $ 95.4 billion.

Amazon, another technological giant whose results are closely observed for signs of tariff damage, also said sales are lingering, growing 8% annually in their e -commerce business in North America in the last quarter.

It predicts similar growth in the coming months.

“Obviously, none of us knows exactly where the tariffs will settle or when,” said Amazon chief Andy Jassi, until he noted that the company had appeared from periods of embarrassment – such as the pandemic – stronger than before.

“We are often able to withstand challenging conditions better than others,” he said. “I am optimistic that this can be repeated.”

Changing the iPhone supply chain in India was “impressive” according to Patrick Murhead, CEO of Moor Insights & Strategy.

“This is an emphasized change from what (Cook) said a few years ago when he said only China could build an iPhone,” said G -n Moorhead.

“There is a lot of progress that Apple has to show here, but it’s a pretty good start,” he said.

Amazon is also repositioned to increase the resistance in the face of the tariffs.

The company said it was working to make sure that there was a variety of sellers, and Mr. Jassi said he thought the company was well positioned for the coming months, pointing to the scale of the company and its role, delivering everyday things.

So far, she said sales were not hurt by tariff turmoil. If anything, the leaders said that the business may have benefited from some customers who are starting to stock up.

Total sales jumped by 9% to $ 155.7 billion in the first three months of 2025, compared to the same period last year, while profits increased by over 60% on an annual basis to approximately $ 17 billion.