People will shop at the Apple Store at Grand Central Station in New York on April 4, 2025.
Michael M. Santiago | Getty Images
President Donald Trump’s 90-day suspension on many of the “mutual tariffs” has given some companies and investors, the largest in the US. appleI’m not that lucky.
The Cupertino-based tech giant relies heavily on China’s supply chain, and its taxes continue to rise, with cumulative US fees currently standing at 145%.
So, despite the US trade situation making much of the world more promising, he says that US-China negotiations continue to be the most important variable for Apple.
“Apple can back down for years with these tariffs,” Dan Ives, global technical research director at Wedbush Securities, told CNBC, adding that the company “falls at sea without risking its life.”
Smartphone makers have diversified their supply chains from China for many years, but of the 77 million iPhones shipped to the US last year, nearly 80% came from China, according to OMDIA data.
A tech-centric research firm estimates that under current tariffs, Apple could be forced to raise the price of phones sold to the US by about 85% in order to maintain margins.
“When the original Chinese tariffs were 54%, that kind of impact was serious, but manageable…but it’s economically meaningless for Apple to raise prices based on current tariffs.”
Some options
Apple reportedly shipped 600 tonnes of iPhones, or as many as 1.5 million, from India to the US before Trump’s new tariffs came into effect. Reuters and The era of India.
Apple and two iPhone producers did not respond to CNBC investigations.
Chiew said the news is unconfirmed, but the stock strip is the best option to quickly mitigate the impact of tariffs and buy yourself for a while.
However, it is not clear how long such stockpiles will last, especially as consumers will increase iPhone purchases in anticipation of higher prices.
According to OMDIA, Apple’s medium-term strategy is to reduce exposure to geopolitical and tariff-related risks and appears to focus on increasing iPhone production and exports from India.
Trump’s temporary suspension could possibly push India’s tariffs to a 10% baseline – at least for now, giving a more favorable entry into the US
However, the accumulation of iPhone manufacturing in India has been a long-standing process. Indian iPhone maker has begun producing Apple’s best Pro and Pro Max iPhone models It was my first time last year.
According to Chiew, it can take at least a year or two to increase sufficient production in India to meet demand, not without its own tariff risk.
Exemption?
Faced with tariffs, experts said the company’s best option is likely to appeal to the Trump administration for tariff exemptions on imports from China as it continues to increase its diversification efforts.
This is something The company had received some analysts, to some extent during the first Trump administration – this time, they believe it could happen again.
“We’re looking forward to seeing you in the future,” said Daniel Newman, CEO of Futurum Group. “This isn’t much discussion, but I’m optimistic that companies committed to expanding the US may see some form of relief as negotiations progress.”
Apple said it would invest in February $500 billion in the UScreates 20,000 jobs.
Still, Trump has made it clear that he believes Apple can make iPhones in the US, but analysts are skeptical about the plan. Wedbush analyst Ives predicts that if it was produced in the US instead of the more typical $1,000, the iPhone would cost $3,500.
Meanwhile, other analysts say that even trade contracts and tariff exemptions may not be enough for Apple to avoid business effects.
“Let’s assume that at least some snow melt comes with either mutual tariff moderation targeting China or Apple’s special exemption,” says Craig Moffett, co-founder and senior analyst at Moffettnathanson, Equity Research Publisher.
“It still doesn’t solve the problem. Even a 10% baseline tariff poses a huge challenge for Apple.”
