Apple is moving a significant portion of its iPhone and device production for the U.S. market out of China, responding to trade tensions and tariffs introduced under former President Donald Trump. CEO Tim Cook announced that most iPhones for the U.S. will soon be manufactured in India, while Vietnam will become the main production hub for iPads, MacBooks, Apple Watches, and AirPods.

Although China will remain the primary production base for devices sold outside the U.S., Apple is diversifying its supply chain to reduce exposure to geopolitical risks. The company estimates U.S. import tariffs could cost it around $900 million this quarter, despite some exemptions for key electronics.

Apple plans to invest $500 billion across the U.S. over the next four years and is gradually shifting manufacturing operations to India and Vietnam. This transition, however, will require significant time and investment.

Despite the changes, Apple reported a 5% year-over-year revenue increase in the first quarter, reaching $95.4 billion. Amazon also reported growth, indicating resilience amid global trade uncertainty.

Analysts view Apple’s manufacturing shift to India as a major milestone, especially after years of relying almost exclusively on China. While challenges remain, experts say it marks a promising start for a more diversified production strategy.