Apple’s $900M Tariff Hit Spurs India Production Shift
Apple projects a $900 million cost increase for the second quarter of 2025 due to existing U.S. tariffs on Chinese-sourced components. To mitigate this, the company is shifting production: iPhones will primarily be manufactured in India, while Macs, Apple Watches, and AirPods will be made in Vietnam. Despite these tariff-related expenses and a slight revenue decline in China, Apple reported strong overall Q2 earnings with revenue up 5% year-over-year. However, concerns remain about the potential impact of tariffs in the second half of the year.
John Q. Hosedrinker