Apple Shifts US iPhone Production to India to Offset Trump Tariffs

Apple has announced a significant shift in its manufacturing strategy, stating that iPhones sold in the United States will no longer be produced in China. Instead, the company will source most of its iPhones from India and its iPads from Vietnam. This strategic move aims to minimize the financial impact of newly imposed tariffs by US President Donald Trump, which are part of an ongoing trade war targeting multiple countries. Apple revealed this change alongside its financial results for the first quarter of 2025, which showed strong performance: revenue reached £71.8 billion and earnings £18.6 billion, exceeding analyst expectations.

CEO Tim Cook acknowledged that while the company has so far absorbed the trade war’s effects, the tariffs could add an estimated £677 million in costs in the upcoming quarter. Some of the high demand observed earlier this year may have been due to US consumers rushing purchases before the new tariffs took effect. Meanwhile, Apple’s business in China has been affected as well, with a 2.3% decline in sales from January to March, partly due to geopolitical tensions.

Although Apple’s stock initially fell by 23% following the announcement of reciprocal tariffs, it has since rebounded slightly but remains below pre-announcement levels. Devices sold outside the US will continue to be manufactured in China, as the company seeks to diversify its supply chain to reduce risk.