Vietnam, India take over as Apple’s key US supply hubs

Apple has begun a major shift in its manufacturing strategy, moving most production of iPhones and other key devices for the US market away from China and into India and Vietnam.

The move comes in response to growing trade tensions and the effects of tariffs imposed by the United States government.

Apple chief executive Tim Cook said most iPhones sold in the US in the coming months will be made in India, while Vietnam will take over as the main production hub for devices such as iPads, Apple Watches, Macs and AirPods.

"We do expect the majority of iPhones sold in US (sic) will have India as their country of origin," he said.

Vietnam is also expected to play a critical role.

According to Cook, it will become the chief manufacturing centre "for almost all iPad, Mac, Apple Watch and AirPods product sold in the US."

China, however, will continue to be the main source for most Apple products sold in markets outside the United States.

This shift comes as Apple estimates that import taxes in the current quarter could raise its costs by about $900 million (Sh116.8 billion).

This figure remains in play despite the Trump administration deciding to exempt certain electronics, including phones and computers, from the latest wave of tariffs.

The pressure for Apple to move its production out of China has been mounting.

The US government has repeatedly called on the tech giant to bring more of its manufacturing processes back to American soil.

Although Apple has not fully relocated to the US, it has emphasized its growing presence in the country.

During a call with investors to discuss the company’s latest financial results, Cook highlighted Apple’s commitment to invest $500 billion(Sh64.9 billion)  across several states over the next four years.

"We do expect the majority of iPhones sold in the US will have India as their country of origin," he said, pointing to the company’s increased investment in India and Vietnam.

The global business environment has shifted dramatically due to changes in US trade policies, and companies around the world are adjusting to this new landscape.

Apple is one of many firms working to protect itself from the cost of tariffs while maintaining strong sales.

Despite the uncertain trade environment, Apple’s revenues remained strong.

In the first three months of the year, the company reported a 5% rise in revenue compared to the same period last year, reaching $95.4 billion (Sh12.3 trillion).

Amazon also appeared to be weathering the uncertainty well.

It reported an 8% year-on-year rise in its North America e-commerce business during the most recent quarter.

The company said it expected a similar growth trend to continue in the coming months.

"Obviously no one of us knows exactly where tariffs will settle or when," said Amazon boss Andy Jassy.

Still, he remained hopeful about the future, saying, "We’re often able to weather challenging conditions better than others. I’m optimistic this could happen again."

Industry observers view Apple’s shift away from China as a big moment for the company.

Patrick Moorhead, chief executive of Moor Insights & Strategy, said the move shows clear progress.

"This is a marked change from what [Cook] said a few years back when he said that only China can build iPhones," he noted.

"There is lots of progress that Apple must show here, but it’s a pretty good start."

Amazon, meanwhile, is also repositioning itself in response to trade pressures.

The company said it was working to maintain a broad network of sellers.

Jassy explained that Amazon’s size and its focus on essential goods would help it stay strong.

The company’s financial results reflect that confidence.

Overall sales rose 9% to $155.7 billion (Sh20.2 trillion) in the first three months of 2025, compared to the same period last year.

Profits also climbed sharply, rising more than 60% year-on-year to about $17 billion (Sh2.2 trillion).