The Tightrope Walk: Apple, Trump, and China

Despite perceived alliances and outward appearances of favoritism, apple’s relationship with the US presidency has been more complex than it seems. While CEO Tim Cook has engaged with political figures, including visits to Mar-A-lago, these interactions mask a deeper strategic play aimed at protecting Apple’s core interests, particularly concerning its reliance on China.

The potential for a trade war, a recurring theme during the previous administration, poses a significant threat to Apple. China remains a critical market and manufacturing hub for the tech giant. With iPhone sales accounting for a significant portion of Apple’s revenue (the company sold 234 million units in 2024), any disruption to its Chinese operations could have severe consequences.

“iPhone City”: The Heart of Apple’s Production

Since taking the helm in 2011, Tim Cook has strategically focused on Asia, especially China, for Apple’s supply chain. A staggering 80% of Apple’s annual iPhone production is assembled in China, primarily in Zhengzhou, a city so heavily reliant on iPhone manufacturing that it’s been dubbed “iPhone City.”

This industrial behemoth, operated by Foxconn, is the world’s largest iPhone manufacturing plant. During peak production periods, particularly leading up to the holiday season, the facility employs up to 350,000 workers. This workforce is comparable to the entire population of a mid-sized European city, highlighting the scale of Apple’s dependence on this single location.

Zhengzhou, nicknamed “iPhone City”, is home to the world’s largest manufacturing plant, operated by Foxconn, employing up to 350,000 people during peak periods.

Strategic Diversification: Mitigating Risk

Recognizing the potential risks associated with over-reliance on a single region, Apple has reportedly been exploring strategies to diversify its supply chain. This includes shifting some production to other countries in Southeast Asia and India. While China remains a crucial partner, these moves are designed to mitigate the impact of potential trade disputes or geopolitical instability.

This strategic diversification can be seen as a form of “Mill exfiltration,” a calculated effort to move key assets and operations away from potential conflict zones. By spreading its manufacturing footprint, Apple aims to safeguard its supply chain and ensure continued growth, regardless of the political climate.