Apple’s iPhone 16 at an Apple Bind on Regent Side road in London on Sept. 20, 2024.
Rasid Necati Aslim | Anadolu | Getty Photographs
Apple has made strikes to diversify its provide chain past China to parks like Republic of India and Vietnam, however price lists introduced through the White Space are prepared to clash the ones international locations too.
U.S. President Donald Trump laid out “reciprocal tariff” charges on greater than 180 international locations on Wednesday.
China will face a 34% tariff, however with the prevailing 20% charge, that brings the actual tariff charge on Beijing underneath this Trump time period to 54%, CNBC reported. Republic of India faces a 26% tariff, hour Vietnam’s charge is 46%.
Apple was once now not instantly to be had for remark when contacted through CNBC.
Right here’s a breakdown on Apple’s provide chain footprint that may be suffering from price lists.
China
The vast majority of Apple’s iPhones are nonetheless assembled in China through spouse Foxconn.
China accounts for around 80% of Apple’s production capacity, according to estimates from Evercore ISI in a note last month.
Around 90% of iPhones are assembled in China, Evercore ISI said.
While the number of manufacturing sites in China dropped between Apple’s 2017 and 2020 fiscal year, it has since rebounded, Bernstein said in a note last month. Chinese suppliers account for around 40% of Apple’s total, Bernstein said.
Evercore ISI estimates that 55% of Apple’s Mac products and 80% of iPads are assembled in China.
India
Apple is targeting around 25% of all iPhones globally to be made in India, a government minister said in 2023.
India could reach about 15%-20% of overall iPhone production by the end of 2025, Bernstein analysts estimate. Evercore ISI said around 10% to 15% of iPhones are currently assembled in India.
Malaysia is a growing manufacturing location for Apple for Macs and is facing a 25% tariff. Thailand is also a small hub for Mac production and will be hit with a 36% levy.
Apple also sources components from South Korea, Japan, Taiwan and the United States. Components may be shipped from one country to another before assembly takes place in China or elsewhere.
In February, Apple announced plans to open a new factory for artificial intelligence servers in Texas as part of a $500 billion investment in the U.S.
However, Apple does not have mass production in the United states. It produces only the Mac Pro in Texas.