Apple Moves iPhone and iPad Production to India Due to Trump’s Tariffs
Apple has begun producing most iPhones for U.S. customers in India and moving iPad manufacturing to Vietnam. The decision aims to shield American buyers from steep price hikes caused by ongoing tariffs on goods from China.
For years, Apple leaned heavily on Chinese factories to meet the world’s insatiable demand for its devices. But with U.S. tariffs adding nearly $900 million in extra costs this quarter alone, the company faced a choice: pass those expenses on to consumers or pivot production.
CEO Tim Cook explained that while the trade dispute with China hasn’t yet caused major financial damage, the long-term risks are too big to ignore.
Moving production to India and Vietnam gives Apple more stability and protects against future cost spikes.
Apple’s supply chain shuffle highlights challenges that go far beyond factory floors. Shifting production means navigating:
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Customs and import rules in new countries.
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Local labor laws and safety regulations.
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The possibility of new duties or trade restrictions tied to the change.
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Complicated origin rules that affect whether tariffs apply at all.
Despite the supply chain shakeup, Apple posted strong results for the first quarter of 2025: $95.36 billion in revenue and $24.78 billion in profit. Still, production costs are expected to rise, especially since building devices in India can be up to 10% pricier than in China.
Apple isn’t alone in this shift. Other tech giants like Microsoft and HP have also started moving production out of China, citing similar concerns over tariffs, regulatory uncertainty, and the rising cost of Chinese labor.
The U.S.-China trade tensions, once seen as a short-term issue, are now influencing long-term corporate strategy across industries.
This wave of supply chain restructuring has also sparked growth in Vietnam’s and India’s manufacturing sectors, prompting those governments to offer tax breaks and other incentives to attract foreign investment.
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