Apple is making a big change in where it builds its products for the US market. Most iPhones sold in the US over the next few months will be made in India, not China, as Apple tries to avoid the extra costs from US tariffs on Chinese goods. Vietnam will become the main place where Apple makes iPads, Macs, Apple Watches, and AirPods for American buyers.
Apple CEO Tim Cook said this shift is happening because US tariffs on Chinese imports could add up to $900 million to Apple’s costs in just one quarter. While some electronics have been temporarily spared from these tariffs, Apple is still moving quickly to adjust its supply chain.
India’s role in Apple’s supply chain has grown rapidly. In the last year, Apple assembled $22 billion worth of iPhones in India-a 60% jump from the year before. Recently, Apple even flew about 1.5 million iPhones from India to the US on six cargo jets to keep up with demand and avoid tariffs. This is a big deal, as China currently makes about 77% of the world’s phones, but India’s share is rising fast.
This move isn’t just about tariffs. India offers lower costs, government incentives, and a large workforce, making it attractive for manufacturing. Apple’s suppliers like Foxconn and Wistron have invested heavily in India, and other tech giants like Samsung and Xiaomi are also building more devices there.
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Despite these changes, China will still be the main source for Apple products sold outside the US. Moving production takes time and money, and Apple is investing billions to make it happen. The company also plans to invest $500 billion in the US over the next four years, showing it’s not abandoning America either.
For now, Apple’s sales haven’t been hurt by the trade turmoil. In fact, revenues and profits are up, and Apple says it’s ready to handle whatever changes come next.
Analysts expect that by 2025, Apple could make up to 25% of all iPhones in India, and Vietnam could handle 20% of iPad and Apple Watch production, plus most AirPods.
Apple’s shift is part of a larger trend, as other companies also look to diversify their manufacturing away from China to reduce risk and respond to global trade tensions.
The move is helping India’s economy grow, bringing in more jobs and investment, and strengthening its position as a global tech manufacturing hub.
