Under the storm of a trade war, Apple Inc. (AAPL.US) has nowhere to escape, facing comprehensive pressure from the supply chain to sales.

With the implementation of the latest round of tariff policies by US President Trump and the continuous escalation of global trade tensions, US tech giants are under pressure. In this storm, Apple Inc. (AAPL.US) is undoubtedly the most watched. Since the announcement of the new round of tariffs on Wednesday, Apple Inc.'s stock price has fallen by a cumulative 15.9%, with a weekly drop of as high as 7.29%. As one of the highest valued companies globally, Apple Inc. is facing its most complex multiple pressures since Trump took office. Analysts point out that Apple Inc. has a broad global business layout, with 64% of its revenue in the 2024 fiscal year coming from outside the US. This ratio has not changed much in the past decade, indicating that the majority of Apple Inc.'s customers come from countries that may impose retaliatory tariffs on US products. As a symbol of "American innovation," Apple Inc. has become a potential target of global anti-American sentiment. Faced with tariff pressure, Apple Inc. has only three choices: raise product prices, compress profit margins, or do both. And this tariff war is far more complicated than just iPhone and Mac sales. Apple Inc.'s second largest source of revenue, its services business (such as iCloud, Apple Music, App Store, etc.) is in a high-growth channel and also has the highest gross profit margin (as high as 74%). However, the implementation of digital services taxes puts this business at significant risk. Several countries currently impose taxes on digital services, with rates ranging from 2% to 5%. But with Trump imposing new tariffs of 10% to 50% on physical goods, countries are likely to simultaneously increase digital tax rates and broaden the tax base. Officials in France have already called for the EU to impose a unified digital service tax on US tech giants such as Apple Inc., Alphabet (GOOG.US, GOOGL.US), Amazon.com, Inc. (AMZN.US), Meta (META.US), and Microsoft Corporation (MSFT.US). This will directly impact Apple Inc.'s most profitable growth engine. In addition to direct price and tax burden pressure, the more troublesome issue is the potential resurgence of nationalist sentiment globally. As one of the symbols of American business culture, Apple Inc. is now joining Coca-Cola Company (KO.US), NIKE, Inc. Class B (NKE.US), McDonald's Corporation (MCD.US), and others in becoming the most easily boycotted brands in international anti-American protests. Apple Inc. has raised concerns in its annual report about political and trade restrictions imposed by GEO Group Inc. The company explicitly states, "The majority of the company's products are manufactured wholly or partly by subcontractors, mainly focused on mainland China, India, Japan, South Korea, Taiwan, and Vietnam." Trade restrictions in key areas could have a significant adverse impact on the company's operations and supply chain. In the 2024 fiscal year, the Greater China region contributed 17% of Apple Inc.'s revenue. And the fact that most of Apple Inc.'s hardware products are still assembled in China makes it particularly vulnerable amid fluctuations in US-China relations. Although Apple Inc. has been trying to reduce its reliance on China for years, such as promoting production layouts in Vietnam and India, it is almost impossible in the short term to completely "de-Chinaize" given Apple Inc.'s massive scale. India is seen as Apple Inc.'s most promising "Newland Digital Technology." Since opening online stores in 2020 and expanding physical stores in 2023, CEO Cook has repeatedly emphasized the importance of the Indian market in earnings calls. Currently, about one in every seven iPhones is manufactured in India. However, products imported from India to the US will be subject to at least a 26% tariff under the latest White House tariff policy, with Vietnam facing even higher tariffs of 46%. This means that even with a global supply chain shift, Apple Inc. cannot completely avoid the impact of "comprehensive taxation." Analysts point out that Apple Inc., which has been sailing through the waves of globalization for years, has now become the most representative "victim" under the risk of global economic fragmentation. What was once an advantage in global supply chains and international customers has now become a possible risk factor that could backfire.