Singapore – Apple has officially confirmed a major shift in its production strategy, moving the manufacturing of most iPhones and other devices intended for the US market out of China and into India and Vietnam. The move is seen as a strategic response to escalating trade tensions and shifting global supply chain dynamics.
CEO Tim Cook announced that India will soon become the primary manufacturing hub for iPhones sold in the United States, while Vietnam will play a central role in producing Apple Watches, iPads, Macs, and AirPods destined for American consumers.
The decision comes amid growing pressure from Washington, where former President Donald Trump and his administration have repeatedly urged Apple to reduce reliance on China and bring production closer to American soil. Despite this, Apple has chosen Southeast Asia as its next manufacturing stronghold.
Apple estimates that US import tariffs could cost the company around $900 million this quarter alone, prompting urgent action to mitigate financial impact. Although key electronics were spared from the latest tariffs, the overall uncertainty in trade policies has forced many tech giants to diversify their manufacturing bases.
During a recent call with investors, Cook highlighted Apple’s plans to invest $500 billion in the United States over the next four years, a move likely intended to appease American political pressure while maintaining operational flexibility overseas.
“India will account for the majority of iPhone production for the US market,” Cook emphasized, underscoring Apple’s confidence in India’s growing manufacturing ecosystem. Meanwhile, Vietnam is emerging as a vital partner in Apple’s broader regional supply chain strategy.
Despite the geopolitical challenges, Apple’s financial performance remains solid. The company reported a 5% year-on-year increase in revenue for the first quarter, totaling $95.4 billion—a signal that consumer demand continues to hold strong.
With India and Vietnam rising as manufacturing powerhouses, Apple’s realignment could usher in a new era of production for global tech firms, reinforcing Southeast Asia’s growing importance in the world’s supply networks.
