Apple’s new cooperation with Trump’s administration; What is the story?

Apple is working with the Trump administration and has no worries about tariffs imposed by Donald Trump; But what is the story?

Despite the continuation of the trade war between the US and China and the heavy tariffs by the Trump administration, Apple seems to have little concern about the future and has recorded a strong financial report. The secret of this relative relaxation lies in the clever strategy of this technology giant to move its production lines.

Apple’s revenue growth even after Donald Trump’s tariffs

Apple recently released its three -month financial report, indicating a $ 1.5 billion ($ 5 % increase) and a $ 1.2 billion net profit ($ 4.9 percent). This strong performance came as analysts were concerned about the impact of tariffs on Apple products, especially the iPhone, which is mainly manufactured in China. But Apple seems to have prepared itself for these conditions.

Apple CEO Tim Cook revealed in an interview with CNBC that the company is now producing about half of the iPhones sold in the US in India. He also added that for almost all other US destination products, including Mac, iPads, AirPads and Apple Watch, the country of Vietnam is the source of Vietnam. This strategic move has greatly reduced Apple’s dependence on China for the US market.

Of course, this does not mean that Apple is completely immune from tariffs. The United States has recently put forward tariffs on Vietnam and India, and Tim Cook confirmed that the majority of Apple products produced for non -American markets are still being made in China. Apple predicts that tariffs will impose over $ 5 million in extra costs in the current quarter, though Cook emphasized that it is very difficult to predict the costs.

Read more

However, Tim Cook’s remarks show that the recent Financial Times report on Apple’s intention to completely transfer US destination iPhones to India by the end of the year is not far from reality, and the company is on the way to achieving that target. This widespread diversity in the supply chain is Apple’s key to reducing risk and relatively low safe passage through the Trump administration’s tariff storm.