China is the main OEM for Apple mobile phones.
Trump's latest tariff policy directly impacts Asia, where Apple's global core supply chain is located, especially affecting its ability to allocate production capacity that relies on Chinese factories. The United States intends to impose an additional 34% reciprocal tariff on Chinese imports. If the existing tax rate is superimposed, the comprehensive tax rate will rise to 54%.
In this way, if consumers in the United States want to buy an iPhone, the price will naturally be more expensive. And the iPhone will definitely be deeply affected. If Apple's parent company transfers the cost to consumers, the price of each Apple will increase by at least 30%, and it is possible to increase by 40% or even higher.
Taking the iPhone 16 launched in the United States as an example, the standard version of the lowest version of this iPhone retails for less than $800. If Apple follows the latest tariff policy, it will inevitably increase the price. Then the price of this iPhone alone will rise by 40%, or even 43%, and its price will exceed $1,140.
What's more, this is just the standard version of iPhone 16. The Plus version of iPhone 16, iPhone 16 Pro, and iPhone 16 Pro Max are naturally more expensive.
This is really a big negative for Apple. On April 3, 2025, Apple's stock price fell 9.25%, with a transaction volume of US$20.925 billion. Such a market reaction is absolutely shocking.
So apart from China's supply chain, does Apple have a better alternative? Rome was not built in a day, let alone an international giant like Apple. It is not easy to create an optimal supply chain.
Despite factors such as geopolitics, supply chain risks and costs, Apple has been gradually promoting the diversification of its supply chain and transferring part of its production capacity to other countries such as India and Vietnam, but at present, China is still the core.
Even if China is left aside, Trump will impose a 26% tariff on imports from India and a 46% tariff on imports from Vietnam. This is also a critical blow to Apple's supply chain outside of China.
Especially in China, there are a large number of companies that provide Apple with various parts, including display screens, batteries, acoustic components, connectors, circuit boards, assembly, etc. In this way, Chinese manufacturers usually have large-scale production capabilities, mature technologies and relatively complete industrial chain supporting facilities.
Here we have to mention several companies that assemble for Apple: Foxconn Technology Group, Pegatron Corporation, and Luxshare Precision. These Chinese companies will be deeply affected by this tariff.
What will Apple do next? For an international giant, the supply chain is the key to success or failure.
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