Apple has revealed a significant shift in its manufacturing strategy, announcing that most iPhones destined for the US will no longer be produced in China. Instead, the tech giant has stated that India will become the primary manufacturing hub for these devices, while Vietnam will play a key role in the production of items such as iPads and Apple Watches. This move is partly in response to the import tariffs imposed during the Trump administration, which Apple estimates could increase its costs by around $900 million in the current quarter, despite some exemptions for electronics.

During a recent investor call, CEO Tim Cook underscored the company's commitment to US investment, noting plans to allocate $500 billion across various states over the next four years. By shifting the supply chain for US-bound products away from China, Cook indicated that the majority of iPhones sold in the US will soon carry an "origin" label from India. On the other hand, products like the iPad and Apple Watch will largely be manufactured in Vietnam. However, Cook added that China will still remain the source for most products sold internationally.

Transitioning production lines has significant financial implications, with estimates suggesting that investing billions in new factories will be necessary. Economic experts, such as Shanti Kelemen from M&G Wealth, have pointed out that ongoing tariffs and the expenses associated with relocating production will impact Apple's supply chains.

Despite the trade turbulence, Apple’s sales performance remains unaffected, as the company reported a 5% rise in revenue, totaling $95.4 billion for the first quarter of the year. Comparisons have been drawn with Amazon, which has also managed positive growth in its North America e-commerce, indicating resilience amidst tariff challenges.

Industry analysts perceive Apple's shift of its iPhone supply chain to India as a notable advancement. As Patrick Moorhead of Moor Insights & Strategy remarked, this transition marks a stark contrast to previous statements made by Cook about the singular capability of China in manufacturing iPhones. With growing complexities in global trade, both Apple and Amazon are actively managing their operations to adapt to changing market conditions, showcasing their capacity to thrive in uncertain environments.