Apple claims to be moving away from China, the target of President Donald Trump's tariffs, to the US for the manufacturing of the majority of iPhones and other gadgets.
According to CEO Tim Cook, Vietnam will be a significant manufacturing base for products like iPads and Apple Watches, while India will produce the bulk of iPhones headed for the US market in the next months.
Despite Trump's decision to exclude certain equipment from the new tariffs, the tech giant calculated that US import levies might increase its expenses by around $900 million (£677.5 million) in the current quarter.
The Trump administration has said time and time again that it wants Apple to relocate its manufacturing to the United States.
The assessment comes as businesses worldwide are rushing to adapt to the massive changes in international commerce brought about by Washington's trade policies.
The CEO of Apple was eager to highlight the company's US investments on a call with investors on Thursday to review the company's financial performance.
Mr. Cook began by reminding everyone of the company's intentions to spend $500 billion over the next four years in many US states.
Made in India
He said that while Apple is moving its supply chain away from China for items going to the US, India and Vietnam stand to gain a great deal from the change.
"We do expect the majority of iPhones sold in US will have India as their country of origin," Cook said.
The primary production location "for almost all iPad, Mac, Apple Watch, and AirPods product sold in the US" will be Vietnam in the meantime.
According to him, the great bulk of goods marketed outside of the United States will continue to be made in China.
However, it will need time and a substantial financial commitment—billions of dollars—to move manufacturing lines to India.
"There will still be tariffs that impact the supply chains [for Apple] and a cost to move them and build new factories," Shanti Kelemen, chief investment officer of M&G Wealth, said on the BBC's Today program.
"Apple have said they want to invest $500bn over the next few years."
Following Trump's announcement that his government will impose "reciprocal tariffs" on goods imported into the US in an effort to encourage businesses to increase their manufacturing in the country, Apple's stock fell precipitously.
However, there was a lot of pressure on his government to change its objectives. It said that certain devices, such as laptops and phones, would be excluded shortly after the tariffs took effect.
There is a lot of uncertainty.
As of right moment, Apple's sales are unaffected by the trade disputes.
According to the corporation, first-quarter sales reached $95.4 billion, up 5% over the same time last year.
Amazon, another digital behemoth whose earnings were being keenly examined for indications of tariff harm, also reported that sales were holding up, with its North American e-commerce division seeing an 8% year-over-year increase in the most recent quarter.
It predicts comparable increase in the next months.
Amazon CEO Andy Jassy said, "Obviously, none of us knows exactly where tariffs will settle or when," but he also pointed out that the company has recovered from times of disruption, like as the pandemic, stronger than before.
"We're often able to weather challenging conditions better than others," he said. "I'm optimistic this could happen again."
Repositioning
"Impressive" is how Patrick Moorhead, CEO of Moor Insights & Strategy, described the iPhone supply chain switching to India.
"This is a marked change from what [Cook] said a few years back when he said that only China can build iPhones," said Moorhead.
"There is lots of progress that Apple must show here but it's a pretty good start," he said.
In order to become more resilient to the tariffs, Amazon is also changing its posture.
The business said that it was trying to ensure that its sellers were diverse, and Mr. Jassy stated that he believed the company was in a good position for the months to come, citing the company's size and its function in providing daily necessities.
It said that for the time being, the tariff unrest had not negatively impacted sales. According to officials, the company could have profited from some consumers beginning to hoard.
Compared to the same time last year, overall revenues increased 9% to $155.7 billion in the first three months of 2025, while profits increased more than 60% year over year to over $17 billion.
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