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Apple’s iPhone 16 is on September 20, 2024 at an Apple store on Regent Street, London.
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apple Action has been taken to diversify its supply chains outside of China to places like India and Vietnam, but the White House announced tariffs will also hit those countries.
US President Donald Trump Arrange “reciprocal tariff” rates in more than 180 countries on Wednesday.
China will face 34% tariffs, but the existing 20% tax rate will increase Beijing’s real tariff rate to 54% under this Trump term, CNBC Report. India faces tariffs of 26%, while Vietnam has an interest rate of 46%.
When CNBC contacted CNBC, Apple did not comment immediately.
This is a breakdown of Apple’s supply chain footprint, which may be affected by tariffs.
China
Most of Apple’s iPhones are still in China assembled by partners Foxconn.
According to estimates from Evercore ISI last month, China accounts for about 80% of Apple’s production capacity.
ISI says about 90% of iPhones are assembled in China.
Bernstein said in a note last month that while the number of manufacturing locations in China fell between Apple’s 2017 and 2020 fiscal years, Bernstein said in a note last month. Bernstein said Chinese suppliers account for about 40% of Apple’s total.
Evercore ISI estimates that 55% and 80% of Apple Mac products are assembled in China.
India
Apple aims to be 25% of all iPhones worldwide and is government minister explain In 2023.
Bernstein analysts estimate that India could reach 15%-20% of total iPhone production by the end of 2025. Evercore ISI says about 10 to 15% of iPhones are currently assembled in India.
Vietnam
In the past few years, Vietnam has emerged as a popular consumer electronics manufacturing hub. Apple has increased production in Vietnam.
According to Evercore ISI, 20% of iPads produced and 90% of Apple wearable components such as Apple Watch are performed in Vietnam.
Other key countries
Malaysia is the manufacturing location for Apple’s Macs, facing a 25% tariff. Thailand is also a small hub for Mac production and will hit it at a tax rate of 36%.
Apple also purchased components from South Korea, Japan, Taiwan and the United States. Components may be shipped from one country to another before a rally is held in China or elsewhere.
In February, Apple announced plans to open a new AI server factory in Texas, part of a US $500 billion investment
However, Apple is not mass-produced in the United States. It only produces Mac Pro in Texas.
