Apple will begin manufacturing a significant portion of iPhones for the U.S. market in India, shifting production from China due to the impact of U.S. tariff policies under former President Donald Trump.
Apple CEO Tim Cook announced on Thursday that a large share of iPhones sold in the U.S. will now be produced in Indian factories. This decision came while presenting Apple’s earnings report for the first quarter of the year.
While iPhones for the U.S. will be made in India, other Apple products like iPads, Macs, AirPods, and Apple Watches will continue to be largely produced in Vietnam. The production shift is part of Apple’s broader strategy to diversify its supply chain amidst ongoing trade tensions between the U.S. and China.
President Trump imposed a 145% tariff on Chinese goods, prompting retaliatory tariffs from China. Although some exemptions were initially applied to semiconductors and electronics, those are expected to be revised soon.
Cook noted that while the tariffs had minimal impact on Apple in the first quarter, continued pressure in the second quarter could lead to significant losses. As a result, Apple is actively relocating its production facilities from China to India and Vietnam.
However, Apple will not be shutting down its Chinese factories entirely. Products sold outside the U.S. will still be predominantly manufactured in China. Despite that, Apple’s sales in China dropped by about 2.3%—approximately $16 billion—in the last quarter, as local smartphone brands with stronger AI features gained more popularity.