Apple Inc. has announced a major shift in its manufacturing strategy, revealing that most iPhones and other devices destined for the U.S. market will no longer be produced in China. Instead, production will now be concentrated in India and Vietnam, as the tech giant looks to mitigate the financial impact of U.S. tariffs on Chinese-made goods.

During a financial call on Thursday, Apple CEO Tim Cook stated, “We do expect the majority of iPhones sold in the U.S. will have India as their country of origin.” He added that Vietnam will take the lead in producing iPads, Mac computers, Apple Watches, and AirPods for American consumers.

The strategic move comes as Apple braces for an estimated \$900 million in additional costs this quarter due to tariffs. While the company is realigning its supply chains, Cook emphasized that China will remain the primary manufacturing hub for Apple products sold outside the U.S.

This development follows pressure from U.S. authorities — beginning under former President Donald Trump — for companies to reduce reliance on Chinese manufacturing. Rather than shifting production to the United States, Apple has opted to expand its operations in India and Vietnam.

Despite the logistical and financial challenges of relocating manufacturing, Apple reaffirmed its commitment to the U.S. economy, pledging a \$500 billion investment over the next four years.

Trade analyst Shanti Kelemen told the BBC, “There will still be tariffs that impact the supply chains \[for Apple] and a cost to move them and build new factories.”

Nonetheless, Apple’s financial performance remains strong. The company reported revenues of \$95.4 billion for the first quarter of the year, marking a 5% increase compared to the same period in 2024.

Apple’s production shift underscores broader trends in global trade, as multinational corporations adapt to geopolitical tensions and evolving economic policies to safeguard their bottom lines.