"iPhones sold in US will have India as their country of origin."
Apple says it is shifting production of most iPhones and other devices sold in the US away from China, which has been a focus of President Donald Trump’s tariffs.
Chief executive Tim Cook says the majority of iPhones for the US market will soon be made in India.
Vietnam, meanwhile, will become a key hub for iPads, MacBooks, Apple Watches and AirPods.
The move comes as Apple estimates new US import taxes could add £677.5 million to its costs this quarter, despite exemptions for some electronics.
The Trump administration has repeatedly urged Apple to bring manufacturing to the US. However, the firm has chosen to reroute supply chains to India and Vietnam instead.
Mr Cook said: “We do expect the majority of iPhones sold in US will have India as their country of origin.
“Vietnam will be the chief manufacturing hub for almost all iPad, Mac, Apple Watch and AirPods products sold in the US.”
He added that China will remain the origin of most Apple devices sold outside the US.
The decision reflects wider efforts by global firms to respond to Washington’s shifting trade policies. Tariffs and trade uncertainty are forcing companies to reconsider how and where they manufacture goods.
Mr Cook began the earnings call by highlighting Apple’s plans to invest £375 billion across multiple US states over the next four years.
Shanti Kelemen, chief investment officer at M&G Wealth, said:
“There will still be tariffs that impact the supply chains [for Apple] and a cost to move them and build new factories.
“Apple have said they want to invest $500bn over the next few years.”
Moving production to India is expected to take years and cost billions, but analysts say the transition marks a significant shift.
Patrick Moorhead, chief executive of Moor Insights & Strategy, said:
“This is a marked change from what [Cook] said a few years back when he said that only China can build iPhones.
“There is lots of progress that Apple must show here but it’s a pretty good start.”
Apple’s move comes after a period of mixed messages from Washington. Though the Trump administration initially proposed broad tariffs, it later exempted some electronics like phones and laptops from new duties.
Even so, Apple shares fell after the administration announced “reciprocal tariffs” aimed at encouraging domestic manufacturing.
Despite the disruption, Apple’s latest financial results show its sales remain strong. Revenues rose 5% year-on-year in the first three months of 2025, reaching £71 billion.
The relocation of Apple’s manufacturing marks one of the most significant supply chain shifts in its history.
While US production remains a political priority, India and Vietnam are emerging as key partners in the global tech economy.
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