Apple's New Manufacturing Shift: India and Vietnam Take Center Stage

Apple will source most iPhones in the US from India by June, while Vietnam will produce nearly all iPads, Macs, Apple Watches, and AirPods. China will dominate production for other markets. CEO Tim Cook highlights tariff challenges and reports a 5% revenue growth despite a slight dip in iPhone sales.

Apple is making a strategic shift in its manufacturing strategy by turning to India and Vietnam for the production of key devices. Starting in June, India will become the primary manufacturer of iPhones sold in the US, marking a significant move away from its reliance on China. Vietnam will take over the manufacturing of nearly all iPads, Macs, Apple Watches, and AirPods sold in the US.

According to CEO Tim Cook, China will continue to produce the majority of Apple's products for other international markets. This decision comes amid escalating trade tensions and tariffs that affect the company's cost structure, notably the 20% tariff on imports to the US originating from China.

The impact of global tariffs could cost Apple an estimated USD 900 million for the June quarter. Despite these challenges, Apple reported a 5% increase in revenue, reaching USD 95.35 billion, driven by a rise in services, Mac, and iPad sales; however, iPhone sales saw a slight decline.