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02-05-2025
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Apple shifts US-bound production from China

Date: 02-05-2025
Sources: bbc.com: 1 | cnbc.com: 1 | news.sky.com: 1
Image for cluster 0
Image Prompt:

A sleek Apple supply-chain scene: a world map highlighting the U.S., India, Vietnam, and China with glowing connection lines. In the foreground, iPhones labeled “U.S.-bound” on an assembly line in India, iPads/Macs/Apple Watch/AirPods flowing from Vietnam, while a vast China factory hub feeds “Global” markets. Subtle icons indicate tariffs (price tag with arrows), margin pressure (slim bar chart), and stock dip (small downward line). Include Apple’s financial actions: a stack of cash with “$100B buybacks,” a rising dividend coin, and a U.S. chip wafer symbol. Clean,

Summary

Apple is accelerating a strategic supply-chain reorientation to mitigate rising U.S. tariffs, moving most iPhone production for the U.S. market to India and shifting iPads, Macs, Apple Watches, and AirPods for U.S. buyers to Vietnam, while maintaining China as the primary source for products sold outside the U.S. Despite better-than-expected quarterly results and robust services growth, Apple’s shares dipped on a slight services revenue miss and guidance implying modest growth and margin pressure, alongside an estimated ~$900 million tariff cost impact in the June quarter. The company is bolstering U.S. investments, expanding chip sourcing domestically, and authorizing substantial buybacks and a dividend increase as it navigates tariff headwinds and positions future products, including Apple Intelligence features, for supported regions.

Key Points

  • Apple will produce most U.S.-bound iPhones in India and shift other device production for the U.S. to Vietnam, reducing reliance on China.
  • Tariffs are expected to add about $900 million in costs this quarter, pressuring margins despite overall revenue and EPS beats.
  • China remains the primary manufacturing base for Apple products sold outside the U.S., with China sales slightly declining.
  • Apple’s stock fell after a minor services revenue miss despite double-digit services growth and stronger-than-feared iPhone performance.
  • Apple approved $100B in buybacks, raised its dividend, and is expanding U.S. investments and chip sourcing.

Articles in this Cluster

Apple says most US-bound iPhones no longer made in China as tariffs biteBritish Broadcasting CorporationBritish Broadcasting Corporation

02-05-2025

Apple will shift most production of iPhones and other devices sold in the US away from China due to US tariffs. Tim Cook said the majority of US-bound iPhones will be made in India, while Vietnam will become the main hub for iPads, Macs, Apple Watches, and AirPods for the US market. Apple estimates tariffs will add about $900 million to costs this quarter, despite some electronics exemptions. China will remain the primary source for Apple products sold outside the US. Apple’s quarterly revenue rose 5% to $95.4 billion. Analysts called the supply-chain shift significant progress. Amazon, also navigating tariff impacts, reported 9% sales growth to $155.7 billion and over 60% profit growth, saying it’s diversifying sellers and remains resilient.
Entities: Apple, Tim Cook, United States tariffs, India, Vietnam • Tone: analytical • Sentiment: neutral • Intent: inform

Apple is getting punished for one thing it did not deliver this quarter

02-05-2025

Apple posted better-than-expected Q2 FY2025 results on revenue ($95.4B, +5% YoY) and EPS ($1.65), with iPhone sales up 2% to $46.84B and China holding up better than feared. Yet shares fell ~4% after-hours due to a slight services miss ($26.65B vs. $26.7B expected), despite services growing 11.6%. Tim Cook flagged minimal March-quarter tariff impact, expects ~$900M added costs in June if current tariffs hold, and highlighted supply chain shifts (more U.S.-sold iPhones from India; other devices from Vietnam). Apple is investing $500B in the U.S., expanding chip sourcing including Arizona. Apple Intelligence features boosted iPhone 16 in supported regions, but the upgraded Siri is delayed to meet quality standards. June-quarter outlook implies low- to mid-single-digit growth, slightly softer gross margin (45.5%–46.5%) and higher opex. Apple ended with $133B cash, authorized $100B more buybacks, and raised the dividend 4%.
Entities: Apple, Tim Cook, iPhone, Services segment, China • Tone: analytical • Sentiment: neutral • Intent: inform

iPhones sold in US will no longer come from China - as Apple reveals impact of Trump's tariffs | Money News | Sky News

02-05-2025

Apple will stop sourcing iPhones sold in the US from China, shifting most iPhone production for the US market to India and iPads to Vietnam to mitigate costs from President Trump’s tariffs. CEO Tim Cook said tariffs could add £677m in costs this quarter, though Apple’s January–March results beat expectations with £71.8bn in revenue and £18.6bn in earnings, possibly boosted by pre-tariff buying. Apple’s shares remain below pre-tariff levels after an initial sharp drop, and China sales fell 2.3%. Devices sold outside the US will continue to be made in China.
Entities: Apple, iPhone, India, Vietnam, China • Tone: analytical • Sentiment: neutral • Intent: inform