Apple will produce more in India and Vietnam to avoid Trump sanctions for China – Liberation
Apple does its best to escape the consequences of the trade war of Trump. During the second quarter, the American giant expects that « The majority of iPhone sold in the United States » come from India, said the boss Tim Cook Thursday, May 1. The iPad, Mac, Connected Watches or Airpods will originally have Vietnam, added the manager.
What avoid customs duties of 145 % applied by the United States to products from China, traditionally the heart of the manufacturing of the apple brand. Apple products from China are however exempt from most of the new customs duties (up to 125 %), pending examination by the United States government.
« Customs duties are still a little unknown » For the firm, said Matt Britzman, financial analyst. « For the moment, Apple products are safe from punitive prices, but even 20 %, the impact is not insignificant « .
During his conference, Tim Cook warned that he was « Very difficult to predict » How the supply circuits would be organized beyond the second quarter. « We understood, a long time ago, that everything concentrated in one place presented too many risks »said the boss. « So, for some parts, we have looked for new sources of supply, and that will continue. »
Moving part of the production in India « Ask the calendar, capacity limits and inevitable cost increases that will reduce margins, be passed on to consumers, or both »reacted Jacob Bourne, another financial analyst. While Apple is preparing for a new cycle of product launching, he continued, « The price policy will be very scrutinized in this context of uncertainty about the economy and supplies ».
Apple therefore limits its joy after the publication of good results in the first quarter. Net profit was 24.8 billion dollars in the first quarter, up 4.8 % over one year, notably thanks to an increase of 1.9 % of iPhone sales. But during the presentation of the results, Tim Cook estimated the potential impact of new customs prices in the current quarter.
In the second quarter, the group provides for a gross margin between 45.5 % and 46.5 %, taking into account the effect of customs duties, a deterioration compared to previous periods (47 % in the last quarter of 2024).
