Apple focuses tech production in Vietnam and India
The company expects a $900 million cost impact from tariffs in the June quarter, according to Apple CEO Tim Cook.
Apple has announced that the majority of its technology devices shipped and sold in the US market in the second quarter will originate from Vietnam and India, in a move aimed at addressing investor concerns over the impact of tariffs on businesses.
Although most iPhones to be sold in the US are currently manufactured in China, iPhone production in India has surged since the Trump administration imposed reciprocal tariffs and China retaliated with corresponding trade restrictions, posing challenges for Apple. To mitigate risks from the escalating US-China trade tensions, Apple has expanded production operations in India.
Last month, Apple was among the technology companies most affected by its reliance on China’s supply chain.
Apple CEO Tim Cook said the company expects a $900 million cost impact from tariffs in the June quarter. He said most iPhones sold in the U.S. next quarter will be made in India, while nearly all iPads, Macs, Apple Watches, and AirPods will come from Vietnam.
The current US administration is still considering additional trade measures that could impact technology companies, with Apple facing a 20% tariff on imports from China and a 10% tariff on goods imported from India into the US market.
