Apple's leadership likely finds relief in Donald Trump's presidential victory, despite their public progressive stances on issues like climate change, according to Bloomberg's Mark Gurman. After facing mounting regulatory pressure under the Biden administration, including a significant antitrust lawsuit and global scrutiny, the tech giant may see opportunities for a more favourable business environment.
The shift in administration could particularly benefit CEO Tim Cook, who previously maintained a productive relationship with Trump, successfully navigating tariff threats and securing crucial exemptions for Apple products. While Trump's campaign promise of imposing up to 60% tariffs on Chinese imports seems daunting, as reported by The Washington Post, Cook's proven ability to negotiate with Trump during his first term suggests similar accommodations may be possible.
The company has strategically positioned itself by expanding production in India. The Economic Times reports that Apple could double its iPhone manufacturing there to over $30 billion annually within two years, helping buffer against potential tariff impacts. CNBC's analysis indicates that Apple's high profit margins make it more resilient to tariff pressures than its tech peers, with Morgan Stanley projecting a relatively modest 5.5% earnings-per-share loss under a 15% tariff scenario.
The New York Times notes that Cook has already begun diplomatic overtures, posting on X: "We look forward to engaging with you and your administration to help make sure the United States continues to lead with and be fueled by ingenuity, innovation and creativity."
Cook enters potential negotiations with several strong talking points: expanded iPhone production in India under Trump ally Narendra Modi's government, an upcoming US-made Mac Pro launch, a new Arizona chip plant, and plans for a major North Carolina campus.
While some Apple employees might resist closer ties with Trump, the company's past experience demonstrates the effectiveness of its pragmatic approach. During Trump's first term, Apple successfully maintained its manufacturing strategy while avoiding major supply chain disruptions.
The appointment of Trump supporter Elon Musk as a key adviser could pose challenges, given his criticism of Apple's App Store policies. However, analysts believe Cook's diplomatic acumen and Apple's significance to the US economy will help forge a workable relationship with the incoming administration.