Apple has announced plans to change its supply chain and move its production from China-based facilities, according to a report by the BBC.
The technology giant’s CEO Tim Cook, blamed additional tariffs, which are due to cost the company $900 million in its current financial quarter.
As part of its business strategy to reduce the impact of tariffs, Apple will shift its supply chain and move its manufacturing facilities from China to India.
Cook said to the BBC: “We do expect the majority of iPhones sold in the US will have India as their country of origin.”
Apple products, including iPhones, iPads, and Apple Watches, will be produced in Vietnam or India, according to the company.
However, the company may have to face the additional costs of shifting its manufacturing facilities, according to analysts.
Previously, the technology giant announced plans to invest $500 billion into American innovation.
Cook said in February: “We are bullish on the future of American innovation, and we’re proud to build on our long-standing US investments with this $500 billion commitment to our country’s future.
“From doubling our Advanced Manufacturing Fund to building advanced technology in Texas, we’re thrilled to expand our support for American manufacturing.
“And we’ll keep working with people and companies across this country to help write an extraordinary new chapter in the history of American innovation.”
Apple plans on building manufacturing facilities in the US, with a major facility in Houston, Texas, which is slated to open in 2026.
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