Core Viewpoint - The article discusses the impact of the U.S. "reciprocal tariffs" on global supply chains, particularly focusing on Apple and its potential price increases for iPhones due to rising tariff costs [2][4][12]. Group 1: Tariff Impact on Apple - Apple may face an additional annual tariff cost of $33 billion if no mitigation measures are taken, leading to potential price increases for iPhones, with estimates suggesting prices could rise to 25,000 RMB [4][5][12]. - The pressure to absorb tariff costs is primarily on Apple, as suppliers have indicated they will not bear these costs, making it likely that the burden will fall on end consumers [4][5][10]. Group 2: Supply Chain Adjustments - Companies in the consumer electronics sector are exploring multiple pathways to adapt to the changing tariff landscape, with a focus on relocating production to countries like Vietnam and Mexico [8][9][11]. - The shift in production is driven by the need to avoid high tariffs, with reports indicating that some manufacturers have already moved 20% to 25% of their production capacity to Vietnam [10][11]. Group 3: Challenges in U.S. Manufacturing - The likelihood of Apple obtaining targeted tariff exemptions is estimated at only 20%, as the process for applying for exemptions has changed, making it more difficult for companies to secure relief [12][13]. - The article highlights that without significant government subsidies and a skilled labor force, relocating manufacturing back to the U.S. is unlikely to be cost-effective for Apple and other tech companies [12][13]. Group 4: Market Dynamics and Future Outlook - The overall demand for consumer electronics is expected to decline, with projections indicating that smartphone production growth may stagnate or even decrease by 5% by 2025 due to the ongoing tariff conflicts and economic pressures [13][14]. - The article emphasizes that the entire consumer electronics industry is undergoing a significant transformation, with supply chain structures being redefined and competitive dynamics shifting as companies adapt to new tariff realities [13][14].