On May 23, 2025, U.S. President Donald Trump announced a proposed 25% tariff specifically targeting Apple Inc. (NASDAQ: AAPL), applied to all iPhones sold in the U.S. not manufactured domestically. This tariff significantly elevates risks for Apple’s global supply chain and its supplier network, potentially impacting profitability, pricing, and strategic production decisions.
Key Suppliers: Revenue Dependency, Products Supplied, and Tariff Exposure
| Supplier (Ticker) | Revenue from Apple | Products Supplied | Tariff Risk Exposure |
|---|---|---|---|
| Luxshare Precision Industry Co Ltd (SZSE: 002475) | >70% | Cables, connectors, acoustic/haptic components, assembly (AirPods, Apple Watch) | High (20-30% price decline) |
| Foxconn (Hon Hai Precision) (TWSE: 2317) | ~46% | iPhone assembly, electronic components | High (15-25% price decline) |
| Pegatron Corporation (TWSE: 4938) | ~57% | iPhone assembly, electronics | High (15-25% price decline) |
| Skyworks Solutions (NASDAQ: SWKS) | ~66–69% | RF components (filters, amplifiers, switches for 5G, Wi-Fi) | Moderate-High (10-20% price decline) |
| Qorvo (NASDAQ: QRVO) | ~47% | RF front-end modules, power management ICs | Moderate-High (10-20% price decline) |
| Qualcomm (NASDAQ: QCOM) | ~20% | Modems for iPhones | Moderate (5-15% price decline) |
| Taiwan Semiconductor Manufacturing Co. (TSMC) (NYSE: TSM) | ~15–20% | Apple Silicon chips (A-series, M-series processors) | Moderate (5-15% price decline) |
| Broadcom (NASDAQ: AVGO) | ~20% | Custom chips, wireless charging components | Low (<5% price decline) |
| Corning (NYSE: GLW) | ~10–15% | Gorilla Glass, Ceramic Shield | Low (<5% price decline) |
| Texas Instruments (NASDAQ: TXN) | ~10–15% | Analog and embedded chips | Low (<5% price decline) |
Impact of Proposed Tariffs
Apple Inc. (NASDAQ: AAPL):
- Immediate margin compression if Apple opts to absorb the full impact of the 25% tariff without raising prices.
- Alternatively, higher retail prices for iPhones if the tariff cost is passed onto consumers.
- Increased operational expenses due to accelerated domestic manufacturing.
- Authoritative sources estimate manufacturing iPhones domestically could increase retail prices to over $3,500 due to substantially higher labor and infrastructure costs. Such an increase would likely result in a significant consumer demand drop, potentially in the range of 20-30%.
High-Risk Suppliers:
- Luxshare, Foxconn, Pegatron: Face immediate revenue declines and operational disruptions. High dependency makes these suppliers particularly vulnerable to decreased Apple orders.
Moderate-High Risk Suppliers:
- Skyworks Solutions, Qorvo: Substantial revenue tied to Apple exposes them to margin pressures and demand fluctuations, potentially accelerating diversification or domestic production initiatives.
Moderate Risk Suppliers:
- Qualcomm, TSMC: Moderately diversified but still face pressure from Apple’s potential in-house development acceleration, tariff-related demand shifts, and indirect cost impacts.
Low Risk Suppliers:
- Broadcom, Corning, Texas Instruments: Lower exposure due to diversified customer bases and established domestic operations.
Investor Fit Matrix
| Investor Style | Fit | Approach |
| Growth (High Risk Tolerance) | ✅ Good | Selectively invest in suppliers such as Broadcom and Qualcomm, strategically positioned to benefit from Apple’s tariff-driven shift toward enhanced U.S.-based manufacturing capabilities. |
| Value (Medium Risk) | ✅ Good | Capitalize on tariff-induced market volatility (price drops) to invest in undervalued, diversified suppliers like TSMC and Texas Instruments, which exhibit strong financial resilience and adaptability. |
| Risk-Averse (Low Risk) | ⚠️ Cautious | Mitigate exposure to suppliers severely impacted by tariffs (Luxshare, Foxconn, Pegatron). Consider diversified semiconductor ETFs like VanEck Semiconductor ETF (NASDAQ: SMH) for protective positioning. |
| ESG/Thematic (Medium Risk) | ⚠️ Cautious | Prioritize ESG-aligned suppliers resilient to tariff threats, notably Texas Instruments and Corning, which maintain strong ESG ratings, strong financial stability, and transparency in domestic operations. |
Conclusion
The proposed 25% tariff specifically targeting Apple’s imported iPhones introduces significant risks, particularly for suppliers with substantial revenue dependency and overseas manufacturing. High domestic manufacturing costs could dramatically increase iPhone retail prices, potentially reducing consumer demand by up to 30%. Investors should reassess exposure, prioritize diversified suppliers with domestic or alternative manufacturing capabilities, and strategically manage portfolios based on outlined risk assessments.
