Cupertino/New Delhi/Hanoi — Apple is accelerating the transformation of its global supply chain: The US tech giant will soon manufacture most iPhones sold in the United States in India, while iPads, Macs, Apple Watches, and AirPods will largely come from Vietnam. CEO Tim Cook confirmed the move in response to rising production costs driven by US tariffs on Chinese goods.

This decision marks a turning point in Apple’s manufacturing strategy and is part of a broader effort to mitigate trade risks through diversification. According to company estimates, the new US import taxes could increase costs by about $900 million this quarter, despite exemptions granted for certain electronic products.

Supply Chain Shift Comes at a Price

While China will remain the production hub for devices sold outside the US, Apple is investing billions to relocate manufacturing for the American market. Tim Cook announced plans to invest $500 billion in the US economy over the next four years. However, he emphasized that shifting production to India will take time and require substantial investments.

Trade Pressures and Tech Resilience

The Trump administration had pushed Apple to bring production back to the US. Apple’s response is a strategic diversification aimed at cushioning future trade disputes. Despite the ongoing tensions, the company’s financials remain robust: Revenue rose five percent year-on-year to $95.4 billion.

Other US tech giants are also weathering the uncertainty. Amazon recently reported solid growth, underscoring the resilience of the sector. Analysts see Apple’s move as part of a growing trend among technology firms to reduce their reliance on China and establish new manufacturing hubs across Asia. (zai)