Tech company Apple has announced that most of the iPhones and other products to be sold in the United States will no longer be made in China. Instead, they will now come from India and Vietnam.
Apple’s CEO, Tim Cook, said this change is part of a big plan to reduce the impact of US tariffs on Chinese-made goods. The company believes these import taxes could cost it around $900 million in the current quarter.
Speaking during a financial call on Thursday, Cook said, “We do expect the majority of iPhones sold in the US will have India as their country of origin.”
He also noted that Vietnam will now be the main location for making iPads, Mac computers, Apple Watches, and AirPods for the US market.
Even though production for US-bound devices is shifting, Cook made it clear that China will still be the main country producing Apple products sold in other parts of the world.
This move comes after US authorities, under former President Donald Trump, pushed for more companies to move manufacturing out of China and into the US. However, Apple has chosen to expand in other countries like India and Vietnam instead.
Cook also reminded investors that Apple plans to invest $500 billion in the US over the next four years.
Trade expert Shanti Kelemen told the BBC: “There will still be tariffs that impact the supply chains [for Apple] and a cost to move them and build new factories. Apple have said they want to invest $500bn over the next few years.”
Despite worries over tariffs, Apple’s business is still doing well. The company reported that its revenue for the first three months of the year was $95.4 billion — a 5% increase compared to the same period last year.
Apple’s decision shows how global trade is changing and how big companies are adjusting to protect their profits and avoid rising costs.
