iPhones Sold in the U.S. to Shift Production from China Amid Trump’s Tariff Impact, Says Apple | Money News

Apple has announced that devices sold in the US will no longer be manufactured in China, as the tech giant seeks to mitigate the effects of Donald Trump’s tariffs.

The majority of iPhones will now be produced in India, while iPads are set to come from Vietnam, helping to stave off significant price increases for American consumers.

During the financial results announcement for January to March, Apple indicated that the escalating trade conflict initiated by the US president has had minimal impact on their overall performance so far.

However, Apple CEO Tim Cook expects the tariffs to lead to an additional cost of £677 million in the current quarter—barring any changes to Trump’s policies.

For the first quarter of the year, Apple reported revenues of £71.8 billion, with profits of £18.6 billion surpassing analyst expectations.

The increase in demand for iPhones during this timeframe could have been fueled by US consumers making purchases before the implementation of new tariffs.

However, the complete effects of any surge in buying will only be clear when Apple discloses its results for April to June later this year.

Apple’s dependence on Chinese factories for iPhone production made it particularly vulnerable to the ramifications of Trump’s trade war compared to its competitors.

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Following the president’s announcement of plans to impose retaliatory tariffs on multiple countries—currently halted for 90 days—Apple’s stock plummeted by 23%, erasing £582 billion in value.

Though the share price has seen a modest recovery, it is still down 5% from pre-“Liberation Day” levels.

Increasing tensions between Washington and Beijing are also affecting Apple’s sales in China, which dropped by 2.3% from January to March.

In discussing the upcoming changes to manufacturing, Mr. Cook remarked, “We have a complex supply chain, and there are always risks associated with it. We learned some time ago that concentrating everything in one location presents too much risk.”

Devices sold outside the US will continue to be manufactured in China.