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Apple’s (AAPL-4.15%) initial plan to take the edge off of President Donald Trump’s trade war includes sourcing more of its phones for the U.S. market from factories in India, according to the Wall Street Journal.
Apple apparently sees this as a temporary measure to mitigate the blow from escalating tariffs; the company isn’t yet seeking to upend its entire supply chain over the news, according to the Journal’s unnamed sources.
Apple’s stock has plunged about 17.5% since Thursday, less than a day after the president blew up global trade norms by hiking taxes on nearly everything imported into the U.S. As part of the chaos, the U.S. announced 34% tariffs on China, and China responded likewise on Friday with 34% tariffs on the U.S. The stakes rose again Monday when Trump threatened an extra 50% tariff hike “if China does not withdraw” its aforementioned retaliatory tariffs.
By comparison, the Trump administration slapped 26% tariffs on India last week. India’s government has indicated that it will not respond with retaliatory measures, per Bloomberg.
Apple has long relied on factories in China to produce much of its iPhones, and as such, the company’s stock has fared worse lately than many of its Big Tech peers. While Meta (META+2.71%), for example, is indirectly vulnerable to tariffs through its impact on corporate advertising budgets, Apple’s entire business hinges on factories in countries with low wages and on parts sourced around the globe.
Apple did not immediately respond when Quartz asked for details on its iPhone sourcing plans.
Apple has shed 24.10% of its stock price in the past month, as analysts expect tariffs to substantially drive up iPhone price tags and ultimately undermine sales. UBS analysts, for example, think the tariffs could drive up the price of Apple’s costliest phone — the $1,199 iPhone 16 Pro Max — by $350, while the $999 iPhone 16 Pro could climb an additional $120.
