Executive director of the Apple Tim Cook, the Center, watches during an inauguration ceremony for President Donald Trump, right, and Vice -President JD Vance, to the left, in Rotunda US Capitol in Washington, January 20, 2025.
Shawn thew | AFP | Getty Images
In the last few years, Apple has sold iPhone Americans Made in IndiaAirpods from Vietnam and the mac table surface Gathered in Malaysia. Apple was part of a strategy for diversifying its production from China.
Apple Used strategy As hedge for its supply chain after the company dealt with Tariffs from the first Trump administrationsupply chain Coid -related questions and Lack of chips This revealed the risk in which the company primarily produced from China.
It seemed like a solid strategy. Until this week, he hit the “reciprocal tariff” President Donald Trump.
Now, Apple leads a fall among technological stocks on Thursday, after the locations of secondary production of the company are included in the Tariff circuit that Trump announced on Wednesday.
The company’s shares have fallen over 9% on Thursday compared to a 6% drop for Nasdaq. This has been deleted more than $ 300 billion for the iPhone market manufacturer and has been the worst one -day effect for shares since March 2020.
“When you look at the reciprocal tariff in countries such as markets such as Vietnam, India and Thailand, where Apple diversifying his supply chain, he has nowhere to escape,” said analyst Morgan Stanley Erik Woring for CNBC “Final Bell.”
To make up for the price of tariffs, Apple may need to increase prices in its lines by 17% to 18% in the US, Wooding estimates. But there is still a great uncertainty about the fact that Apple will do and that China could take revenge on the United States, Woring said.
“In this type of environment, you have to think about the worst scenario,” he said. “It seems that each side is in this geopolitical scenario of types of digging.”
On Thursday, Apple did not respond to a request for comment on his reaction to Trump’s tariffs or if he could increase prices in the United States, he also did not comment reported Meetings with Trump this year or what they talked about.
“We are following the situation and we have nothing more to add than that,” Cook told analysts at the invitation of earnings in January.
Apple could still get the exemption of products on US tariffs, much like he started tariffs at China during the first Trump administration. But if it is not, the tariffs will endanger his business.
The employee works at the Rising Stars Mobile India PVT factory, the FoxConn Technology Co., in the city of Sri, India, India, July 11, 2019, Foxconn, also known as Hon Hai Precision Industry Co., opened its first Indian factory four years ago.
Karen Dias | Bloomberg | Getty Images
“Basically all” Apple’s production is done in China, India, Japan, South Korea, Taiwan and Vietnam, according to a financial submission in November. Apple warned investors that the tariffs could harm his business, encourage him to increase the prices and even force him to stop completely offering certain products.
Apple cider The official list of suppliers – The presentation of 98% of their consumption on materials, production and assembly – is greatly weighted in countries that have disproportionately influenced by Tariff Trump.
India has 26% of tariffs, Japan has received a duty of 24%, South Korea is 25%, Taiwan is 32%, Vietnam received 46% of tariffs, and Malaysia received 24% of tariffs. In the meantime, China has now had 54% of tariff rates after 34% on Wednesday to existing 20% tariffs.
“The impact can be particularly significant if these restrictive measures apply to countries and regions in which the company generates a significant part of its revenue and/or has a significant surgery of supply chain,” Apple wrote in the submission.
The tariffs are intended to return production to the US, Trump said. During the announcement, he specifically quoted Apple, saying “he would build his plants here.” Apple produced a top -notch work computer called Mac Pro in Texas, but the vast majority of its final assembly takes place abroad.
Apple’s investments in the amount of US $ 500 billion, which Trump called on Wednesday, includes planned shopping for parts and chips from US suppliers, but the company did not commit to manufacture its products of large quantities on US coasts.
The company resistance to make the final production in the US is a long-standing position for the company. In 2011, the late founder of Apple Steve Jobs said to former President Barack Obama yes “These jobs do not come back“When asked about the iPhone of make-in-in-you.
Analysts agree that it is unlikely because Apple would be expensive to bring their own supply chain to the USA
“The reality is that in our estimation it would take $ 3 and $ 30 billion to move as much as 10% of its Asian supply chain to the US with a major disorder in the process,” wrote Wedbush analyst Dan Ives on Thursday.
Apple investors will want to know how much Trump’s tariffs will harm the earnings of the company.
Earlier this year, several analysts forecast a relatively small fall In the earnings of the company according to the part according to the new trade regime, partly on the basis of the assumption that Apple could use its secondary production locations to avoid tariffs on US goods imported from China.
Now analysts are trying to model that Apple can balance the price increase to their products in relation to the additional costs. Apple often does not raise prices outside the introduction of a new product, and is expected to release new phones in September.
“There is no doubt that if the tariffs are kept, they will adversely affect Apple’s basics, with a lack of margin and earnings for earnings,” CFRA research analyst Angelo Zino wrote on Thursday.
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