The Trump administration wants Apple to move operations out of China to the US, but Apple is facing challenges with high costs and logistics in shifting production.
Wall Street analysts believe China remains crucial for Apple's manufacturing despite the risks associated with staying there and mounting pressure from the Trump administration.
The shift of Apple's manufacturing from China to the US could result in significantly higher labor costs and import fees, potentially increasing iPhone costs by up to 90%.
While Apple has been diversifying its manufacturing to other countries like India and Vietnam, completely moving production out of China could have major business risks including regulatory retaliation and impacts on its largest market outside of the Americas.