Overview

• On July 7, trade adviser Peter Navarro publicly lambasted Tim Cook for slow progress in shifting iPhone assembly out of China, calling it Silicon Valley’s “longest-running soap opera.”
• President Trump’s 25% tariff threat on overseas-made iPhones resumed in late June after a 90-day pause, bolstering administration leverage.
• Apple has ramped up iPhone output in India, expecting most US-sold units in the June quarter to originate there to sidestep higher tariffs.
• Industry analysts warn that fully onshoring the complex, China-centric supply chain to the US would be prohibitively costly, potentially tripling device prices.
• China’s integrated supplier clusters, massive skilled workforce and just-in-time logistics remain indispensable to Apple’s ability to scale iPhone production.