• Apple's operations are significantly impacted by recent tariff announcements, with shares dropping approximately 11% since the announcement. The company has been working to mitigate the effects of tariffs by increasing production in India, but the complexity and scale of its Chinese supply chain make it difficult to shift operations quickly. The recent exemption for electronics from tariffs provides temporary relief, but the long-term implications of U.S.-China trade tensions remain uncertain.

• The intricate supply chain Apple has built in China over the past two decades is a double-edged sword. While it allows for cost-effective production and high profit margins, it also exposes the company to geopolitical risks. Apple's CEO, Tim Cook, has previously navigated these challenges by making strategic investments in China, but the ongoing trade war and potential future tariffs could threaten its market position and profitability.