Apple Says It's Shifting Production Away From China

Most products sold in the US will be made in India or Vietnam, CEO says
Posted May 2, 2025 6:53 AM CDT
Apple Says It's Shifting Production Away From China
People shop at an Apple Store in New York last month.   (AP Photo/Yuki Iwamura)

Apple says it's shifting production of iPhones and other devices out of China in response to President Trump's tariffs—but they won't be made in America. "We do expect the majority of iPhones sold in the US will have India as their country of origin," CEO Tim Cook said Thursday, per the BBC. Vietnam, meanwhile will be the source of "almost all iPad, Mac, Apple Watch, and AirPods product sold in the US," Cook said.

Cook said the vast majority of products it sells outside the US will still be made in China, but the company plans to keep diversifying its supply chain, the Wall Street Journal reports. "What we learned some time ago was that having everything in one location had too much risk with it," he said. Trump has exempted smartphones from his "reciprocal" tariffs on imports from China, but an import tax of 20% on smartphones from China—and 10% on imports from India and Vietnam—remains.

Apple reported earnings Thursday that were ahead of Wall Street's expectations, the AP reports, though its stock price still fell more than 3% in after-hours trading. The stock has recovered most of the 23% drop it saw after Trump's "Liberation Day" tariffs announcement a month ago. Cook said Thursday that tariffs will probably add around $900 million to the company's costs in the current quarter. (More Apple stories.)

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