The tech giant said that despite President Donald Trump's decision to exempt major electronics from new import taxes, tariffs on goods entering the United States would increase by nearly a billion dollars.

iPhone maker estimates are as companies strive to respond to Trump’s tariff strategy, which has shattered supply chains and raised uncertainty about consumer demand.

Apple said it is shifting production of iPhones, which is moving away from China, which faces its highest responsibilities.

Apple said most iPhones sold in the U.S. in the coming months will be made in India.

For now, the turmoil has left Apple's sales unscathed.

The company said revenue in the first three months of this year increased by 5% from the same period last year to $95.4 billion.

Amazon, another tech giant, has suffered signs of tariff losses, also saying sales are rising, with North American e-commerce business growing 8% year-on-year in the latest quarter.

It predicts similar growth in the coming months.

"Obviously, none of us knows exactly where the tariffs will be addressed or when they will be lowered," said Amazon boss Andy Jassy, ​​noting that the company has emerged from periods of disruption, such as the pandemic, which has become stronger than before.

“We are usually able to get through challenging conditions better than others,” he said. “I’m optimistic that this could happen again.”

Apple stock plummeted after Trump announced his administration would impose "mutual tariffs" on products imported into the United States, with the goal of persuading companies to make more products in the United States.

Trump said he hopes Apple products are especially made in the country.

But the government is already under tremendous pressure to pay attention to the plan. Shortly after the tariffs came into effect, it announced that certain electronic products, including mobile phones and computers, would be exempted.

In a call to discuss the company's quarterly results with investors, Apple boss Tim Cook seems keen to draw attention to Apple's investment in the U.S. to remind him of plans to invest $50 billion in multiple states over the next four years.

But while Apple has moved its U.S.-bound products to supply chains far away from China, it is India and Vietnam that are expected to be the biggest beneficiaries, not the United States.

Mr Cook said the company is expected to destiny most of its iPhones as India's United States by the end of June.

"We do expect most iPhones sold in the United States to be in India as their country of origin," Cook said.

He said Vietnam will be the country of origin “almost all iPad, Mac, Apple Watch and Airpods products are for sale in the United States.”

He added that China will remain the country of origin for the vast majority of products sold outside the United States.

Moor Insights & Strategy CEO Patrick Moorhead said the iPhone supply chain’s transition to India was “impressive”.

"This is as obvious as what (Cook) said a few years ago that China could only build iPhones," Mr. Moorehead said.

"Apple has to show a lot of progress here, but it's a good start," he said.

Amazon is still repositioning itself to increase its flexibility when it comes to tariffs.

The company said it worked to ensure it has a diverse seller, and Jassy said he believes the company is in a good position in the coming months, pointing out the size of the company and its role to provide everyday essentials.

For now, it says sales have not been hurt by tariff turmoil. Executives say the business could benefit from some customers who started stocking, if anything.

In the first three months of 2025, overall sales rose 9% to $155.7 billion, while profits soared more than 60% to about $17 billion in the first three months of 2025.