New York – Apple is overhauling its manufacturing strategy, moving much of its iPhone and device production for the US market away from China to alternative hubs in India and Vietnam. The move comes as the company seeks to navigate the economic ripple effects of ongoing US-China trade tensions.
CEO Tim Cook stated that the majority of iPhones sold in the US in the coming months will be produced in India, while Vietnam will handle large-scale manufacturing of products like iPads, MacBooks, and Apple Watches. The shift underscores Apple’s effort to diversify its production base amid geopolitical uncertainty.
The change also reflects Apple’s urgent response to rising import costs. The tech giant estimates US tariffs could inflate expenses by as much as $900 million this quarter—despite exemptions for some electronics like smartphones and computers following industry pushback.
Trump-era pressure to bring manufacturing back to the US has persisted, yet Apple’s response leans toward strategic globalization rather than domestic reshoring. With robust supply chain infrastructure and lower production costs, India and Vietnam present attractive alternatives.
On a recent investor call, Cook reiterated Apple’s long-term financial commitment to the US with plans to invest $500 billion domestically. However, operational efficiency and risk mitigation are clearly driving the relocation of manufacturing for export.
Apple’s global strategy reflects broader shifts among multinational corporations reevaluating their dependence on China. As trade dynamics evolve, Southeast Asia has emerged as the top beneficiary—both economically and geopolitically.
Despite the manufacturing pivot, Apple’s sales have remained strong. The company reported $95.4 billion in revenue for the first quarter of 2025, a 5% increase compared to the previous year.
As the trade war reshapes industrial landscapes, Apple’s move serves as a case study in how global tech leaders balance political pressure, economic survival, and supply chain resilience.
