Apple has reported robust financial results for the first quarter of 2025, with revenue reaching $95.4 billion and net income totaling $24.78 billion, marking a 5% and 4.8% year-over-year increase, respectively. Despite these gains, the company is bracing for an estimated $900 million in additional costs this quarter due to new U.S. tariffs on imports from China.
To mitigate the impact of these tariffs, Apple is accelerating its supply chain diversification. CEO Tim Cook announced that approximately half of the iPhones sold in the U.S. are now produced in India, with plans to shift all U.S.-bound iPhone production to India by 2026. Additionally, most iPads, Macs, Apple Watches, and AirPods for the U.S. market are being manufactured in Vietnam.
While these strategic moves aim to reduce dependency on Chinese manufacturing and navigate the complexities of international trade policies, Apple acknowledges that the majority of its products for markets outside the U.S. continue to be produced in China. The company remains vigilant in monitoring global trade developments to adjust its operations accordingly.
Despite the challenges posed by tariffs and shifting supply chains, Apple’s proactive measures reflect its commitment to maintaining operational resilience and delivering value to its stakeholders.
Source: (Mashable)
