Apple says the majority of the iPhones bound for the U.S. market in the coming months will be made in India, as it shifts production of most iPhones and other devices to be sold in the U.S. away from China, reports BBC News. Meanwhile Vietnam will be a major production hub for items like iPads and Apple Watches, chief executive Tim Cook says.

The technology giant estimated that U.S. import taxes could add about $900 million to its costs in the current quarter, despite President Donald Trump's decision to spare key electronics from the new tariffs.

The Trump administration has repeatedly urged Apple to move production to America. 

The estimate comes as firms around the world are scrambling to respond to the huge shifts in global trade triggered by Washington's trade policies.

On a call with investors on May 1 to discuss the firm's financial performance, the Apple boss drew attention to the company’s investments in the U.S., including plans to invest $500 billion across several U.S. states over the next four years.

He added that China will remain the country of origin for the vast majority of total products sold outside the U.S.