People walk past the Apple store on 5th Avenue in New York City, US on May 1 - Photo: REUTERS
On May 1, Apple CEO Tim Cook announced that most of the iPhones sold in the US in the April-June quarter will be manufactured in India, while almost all iPad, Mac, Apple Watch and AirPods products will originate from Vietnam, according to Nikkei Asia magazine.
Meanwhile, China will continue to be the main source of Apple's total sales outside the US this quarter. US President Donald Trump has imposed a 145% import tax on goods from China.
Mr Cook said the new tariffs would add $900 million to its costs in the April-June quarter, as the company faces geopolitical uncertainties that have strained its Asia-dependent supply chain.
The US tech giant reported strong sales growth in the third quarter. However, sales declined in China, where Apple is facing increasingly fierce competition and has yet to launch breakthrough artificial intelligence (AI) products.
For the three months ended March 29, Apple reported total revenue of $95.4 billion, up 5% from the same period last year. Revenue from the iPhone business - Apple's main source of revenue - increased 1.9% to $46.8 billion in the latest quarter compared to the same period last year.
"In the quarter ending in March, the impact from tariffs was limited as we optimized our supply chain and inventory," Cook said, adding that there was no "clear evidence" that the growth was due to consumers stocking up on products ahead of the tariffs.
For the April-June quarter, the company estimates the tariffs will add $900 million to costs, assuming current tariffs remain in place.
Despite rising costs, Apple CFO Kevan Parekh said the company's overall revenue for the quarter is expected to increase.
Apple posted strong growth in the quarter ended in March, especially in the Americas and Japan.
Apple diversifies supply chain
Apple's major supply hubs, including China, India and Southeast Asian countries, are facing varying levels of tariffs imposed by the US.
Although the Trump administration has exempted phones, computers and semiconductors from initial reciprocal tariffs, Washington has announced it will impose a separate additional tariff on chips - a key component in Apple products.
Mr Cook said Apple would continue to diversify its sourcing because it “realized a while ago that having everything in one location was too risky”.
Now for the entire supply chain, instead of rushing to bring production back to the US, Apple has stepped up investment in Southeast Asia and India.
Apple has been helping suppliers buy machinery and equipment to increase production capacity. It has told suppliers that most of the iPhones, MacBooks and iPads sold in the US need to be made in India and Vietnam, and is rapidly shifting more component production to Thailand.
Source: https://tuoitre.vn/apple-thong-bao-phan-lon-san-pham-cua-ho-ban-tai-my-se-den-tu-an-do-va-viet-nam-20250502093208979.htm
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