With President Trump imposing tariffs, the trade war has severely impacted the U.S. tech industry, prompting Apple to consider moving part of its iPhone assembly from China to India, drawing significant attention.

Expert Craig Moffett notes that Apple’s supply chain is deeply entrenched in China, making the shift to India far from straightforward. While relocating some assembly could potentially cut costs, most iPhone components are still manufactured in China, complicating tariff issues.

Moreover, the global trade war is affecting both production costs and sales. Moffett warns that transferring assembly to India might lower manufacturing costs but the pressure from tariffs and slowing macroeconomic trends could dampen consumer demand, which is not favorable for product companies. He also highlights that tariffs imposed by the U.S. on China are likely to affect iPhone sales in the Chinese market, with consumers potentially turning to domestic brands like Huawei and vivo.