Overview

• The Trump administration has imposed a 145% tariff on Chinese imports, significantly affecting Apple's supply chain and increasing costs for iPhones and other products.
• Apple is focusing on producing higher-margin iPhone 17 Pro and Pro Max models, which yield 10–15% more profit per unit, as a strategy to absorb some of the tariff burden.
• The company is expediting efforts to scale up iPhone manufacturing in India, but analysts warn it could take 6–12 months to achieve substantial output increases.
• Experts caution that shifting even 10% of production to the U.S. would be highly disruptive, requiring $30 billion and three years to implement, making domestic manufacturing impractical.
• Apple's market capitalization dropped by nearly $640 billion in three days following the tariff announcement, reflecting investor concerns about long-term profitability.