From Yahoo Finance: 2025-04-15 13:23:00

The Trump administration exempted smartphones, laptops, processors, displays, and memory chips from tariffs, but later clarified it was temporary. The US government is reassessing the consumer electronics supply chain and investigating semiconductors, hinting at potential tariffs. Trump raised tariffs on Chinese imports to 145%, urging US production of devices like Apple iPhones.

Manufacturing Apple products in the US would require significant investment and effort, causing business disruption. China’s established electronics ecosystem with skilled labor and production sites hosts over half of Apple’s global suppliers. Replicating this in the US would need attracting skilled labor and education reforms, which current policies may not support.

If Apple doesn’t secure long-term tariff exemptions, device costs may rise. Currently, 80% of Apple products are assembled in China, with a possible 145% tariff raising an iPhone Pro Max price to $2,600. Apple diversifies to India and Vietnam but remains heavily reliant on China, where 90% of iPhones are assembled.

Amid tariffs, Apple stockpiles iPhones, but upcoming models may face tariffs, complicating pricing and demand. Shifting production to the US could pose challenges for Apple, risking supply-demand imbalances, higher prices, and lost sales. In China, Apple faces negative sentiment, competition from local brands, and Samsung’s diversified supply chain advantage.

Apple faces a potential crisis if forced to shift production to the US, risking supply-demand imbalances and lost sales. Challenges in China, its third-largest market, include growing negative sentiment, competition from local brands, and Samsung’s diversified supply chain advantage. This is Apple’s biggest crisis since 1997, potentially impacting global operations.

Read more: Can Apple manufacture in the US?