{"id":70480,"date":"2025-05-03T06:47:08","date_gmt":"2025-05-03T06:47:08","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/70480\/"},"modified":"2025-05-03T06:47:08","modified_gmt":"2025-05-03T06:47:08","slug":"us-iphone-supply-shifts-to-india-other-products-to-vietnam-business","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/70480\/","title":{"rendered":"US iPhone supply shifts to India, other products to Vietnam – Business"},"content":{"rendered":"

\u2022 Apple expects $900m tariff hit, faces disruption in supply chain
\u2022 CEO says most Apple products for sale outside US will still be made in China<\/p>\n

SAN FRANCISCO: Apple on Thursday reported first-quarter profit above expectations but warned that US tariffs<\/a> could cost the company and were disrupting its supply chain.<\/p>\n

Apple expects US tariffs to cost $900 million in the current quarter, even though their impact was \u201climited\u201d at the start of this year, chief executive Tim Cook said on an earnings call.<\/p>\n

Cook said he expected \u201ca majority of iPhones sold in the US will have India as their country of origin,\u201d adding that Apple\u2019s products were exempt from Trump\u2019s most severe reciprocal tariffs for now.<\/p>\n

\u201cWe are not able to precisely estimate the impact of tariffs, as we are uncertain of potential future actions prior to the end of the quarter,\u201d Cook said.<\/p>\n

\u201cAssuming the current global tariff rates, policies and applications do not change for the balance of the quarter and no new tariffs are added, we estimate the impact to add $900 million to our costs.\u201d<\/p>\n

Tit-for-tat exchanges have seen hefty US levies imposed<\/a> on China, with Beijing setting retaliatory barriers on US imports. High-end tech goods such as smartphones, semiconductors and computers received a temporary reprieve from US tariffs.<\/p>\n

Although completed smartphones are exempted from Trump\u2019s tariffs for now, not all components that go into Apple devices are spared, said independent tech analyst Rob Enderle.<\/p>\n

\u201cThe more components are crossing borders, the most cost flows through to the device,\u201d Enderle explained.<\/p>\n

\u201cIn the end, this all adds up to an expensive mess,\u201d he said of the tariff situation.<\/p>\n

Canalys research manager Le Xuan Chiew said Apple built up inventory ahead of the tariffs going into effect.<\/p>\n

\u201cWith ongoing fluctuations in reciprocal tariff policies, Apple is likely to further shift US-bound production to India to reduce exposure to future risks,\u201d he said.<\/p>\n

While iPhones produced in mainland China still account for the majority of US shipments, production in India ramped up toward the end of the quarter, according to Canalys.<\/p>\n

Cook said Vietnam would be the country of origin for almost all iPad, Mac, Apple Watch and AirPod products sold in the US.<\/p>\n<\/p>\n

China will continue to be where most Apple products are made for sale outside the US, he insisted.<\/p>\n

\u201cWhat we learned some time ago was that having everything in one location had too much risk with it and so we have, over time with certain parts of the supply chain, opened up new sources of supply,\u201d Cook told analysts.<\/p>\n

\u201cYou could see that kind of thing continuing in the future.\u201d<\/p>\n

Sales slip in China<\/strong><\/p>\n

Apple\u2019s revenue of $95.4 billion in the recently ended quarter was driven by iPhone sales, with the company reporting $24.8bn profit for the quarter.<\/p>\n

\u201cApple saw strong growth in the Americas and Japan,\u201d said CFRA Research equity analyst Angelo Zino, noting part of the reason could have been ramped up orders to get ahead of US tariffs.<\/p>\n

\u201cChina revenue declined three per cent, but the hope was for growth as subsidies were put in place to help stimulate demand in the region.\u201d<\/p>\n

Apple shares were down more than three per cent in after-market trading.<\/p>\n

\u201cThe real story is in Tim Cook\u2019s plans to navigate these unprecedented trade challenges,\u201d said Emarketer analyst Jacob Bourne.<\/p>\n

Apple\u2019s plan to shift manufacturing to India \u201craises pressing questions about execution timeline, capacity limitations, and potentially unavoidable cost increases that will shrink margins, be passed to consumers, or have a mix of consequences,\u201d Bourne added.<\/p>\n

Published in Dawn, May 3rd, 2025<\/p>\n","protected":false},"excerpt":{"rendered":"\u2022 Apple expects $900m tariff hit, faces disruption in supply chain\u2022 CEO says most Apple products for sale…\n","protected":false},"author":2,"featured_media":70481,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3159],"tags":[547,53,23938,16,15,3290],"class_list":{"0":"post-70480","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-mobile","8":"tag-mobile","9":"tag-technology","10":"tag-trump-2-0","11":"tag-uk","12":"tag-united-kingdom","13":"tag-us-trade-war"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/114442564349623527","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/70480","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=70480"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/70480\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/70481"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=70480"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=70480"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=70480"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}