* With escalating U.S.–China trade tensions, Apple could face steep tariff increases. Analysts warn tariffs on Chinese imports
could hit as high as 145%, severely inflating production costs. One article projects this could add $10 billion annually to
iPhone expenses.
* While Apple is apparently shifting some production to India and Vietnam, these regions still depend heavily on Chinese parts,
and manufacturing costs are 5–10% higher.
* China may restrict support from Chinese engineers or suppliers to Apple’s new operations in India—potentially delaying
diversification plans.
* Greater China — encompassing Mainland China, Hong Kong, and Taiwan — accounted for nearly 20% of Apple’s revenues—
about $74 billion annually. A regional conflict (e.g., over Taiwan) could abruptly eliminate this, much like Russia‑related
disruptions did for others.
* The Uyghur Forced Labor Prevention Act further complicates matters. Chinese suppliers linked to Xinjiang's labor practices
face U.S. bans, risking supply chain disruptions. Meanwhile, China's control over rare earth minerals—essential for
semiconductors and sensors—gives it leverage to weaponize shortages.
* Apple has previously been the target of Chinese Espionage actions; the company’s proprietary data pertaining to its
autonomous vehicles program was stolen in 2018 and 2019. Since then, Chinese firms have become a global leader in
autonomous vehicles, potentially off the back of Apple’s investment.
* As Patrick McGee makes devastatingly clear in … Apple in China, the American company’s decision … to manufacture about
90 percent of its products in China has created an existential vulnerability not just for Apple, but for the United States—
nurturing the conditions for Chinese technology to outpace American innovation.”
* Apple’s disclosures regarding the foregoing issues have fallen short of adequately informing shareholders.
* Insufficient disclosures can expose Apple to additional litigation risk.