Apple's Global Shift: iPhones from India and Vietnam, Tariffs Looming

Apple's Supply Chain Maneuvers to Mitigate Tariff Impact In response to the 125% tariffs imposed on Chinese imports by the Trump administration, Apple CEO Tim Cook has revealed significant changes to the company's global supply chain. For shipments to the United States, most Apple products will originate from Vietnam, with iPhones being split between India and China. Specifically, half of all iPhone shipments to the U.S. will come from India, while the other half will continue to be sourced from China.

For the rest of the world, China will remain a key supplier. This strategy is designed to keep the supply chain efficient while minimizing the impact of tariffs in the United States. However, due to the high volume of iPhone shipments, Apple anticipates a cost increase of $900 million during the June quarter.

The company's ability to manage these costs remains uncertain, especially given the potential for further changes to tariff policies and incoming semiconductor tariffs. If no changes occur to the current tariff scheme, the $900 million estimate could be a low-end figure. The cost impact is expected to affect consumers as well, potentially leading to price adjustments in the fall.