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Here's where Apple makes its products — and how Trump's tariffs could have an impact

1. Apple diversifies supply chain amid new U.S. tariffs affecting multiple countries. 2. China faces a combined tariff rate of 54% affecting Apple's substantial production. 3. India and Vietnam also face significant tariffs impacting Apple's assembly plans. 4. Apple aims for 25% of iPhones made in India by 2025 as local production ramps up. 5. Significant component sourcing from other countries could be impacted by these tariffs.

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FAQ

Why Bearish?

The new tariffs raise production costs, which could dampen profit margins. Historical precedents, like the 2018 tariffs affecting tech giants, resulted in stock price decreases.

How important is it?

The tariffs impact Apple's cost structure directly, affecting investor sentiment and stock value. Tariff-related developments always instigate immediate reactions in AAPL's stock.

Why Short Term?

Immediate tariff impacts will occur quickly, affecting Q4 2024 earnings and potentially Q1 2025.

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