Apple announced a strategic shift in its production strategy by moving the majority of iPhones destined for the US market from China to India and Vietnam. This decision comes amid increasing US tariffs, which the company predicts could inflate its costs by nearly $900 million in the current quarter. Apple's CEO Tim Cook highlighted the company's commitment to invest $500 billion in the US, while also emphasizing the importance of India and Vietnam in the future production landscape. Although these changes promise significant benefits, transitioning production will require substantial time and capital investment.
Apple is shifting production of most iPhones for the US market away from China, primarily to India and Vietnam, in response to US tariffs.
Despite sparing key electronics from new tariffs, Apple anticipates an increase of $900 million in costs due to US import taxes this quarter.
Tim Cook emphasized Apple's commitment to invest $500 billion in the US over the next four years while shifting production lines to India and Vietnam.
China will remain the production leader for products sold outside the US, but the transition to India for iPhones will require considerable investment.
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