From Financial Modeling Prep: 2025-03-30 06:01:00

Apple is working to reduce its dependence on China, aiming to shift 25% of iPhone assembly to India. However, progress is slow due to infrastructure and labor issues. With Trump’s return raising trade war concerns, Apple faces pressure to accelerate its supply chain overhaul, despite China still accounting for 40% of manufacturing capacity.

Geopolitical tensions and trade war risks have led Apple to diversify its supply chain. The fluctuating U.S. tariffs on Chinese imports impact Apple’s cost structure. The potential for a U.S.-China decoupling could disrupt Apple’s supply chain, increasing costs and causing production delays.

COVID-19 lockdowns in China caused supply chain disruptions, prompting Apple to consider spreading risk by moving production to India, Vietnam, and the U.S. However, challenges in India include low iPhone production share, infrastructure and labor issues, and regulatory complexities.

Despite challenges, Apple continues to invest in the U.S. and may adjust prices due to supply chain shifts. Investors should monitor Apple’s production changes, trade war developments, and India’s manufacturing progress for potential market impact. Apple’s slow shift from China to India poses challenges, but geopolitical risks make diversification crucial for investors to watch closely.



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