Apple an iPhone maker is no longer the world’s most valuable company. According to a CNBC report Microsoft has surpassed Apple in market capitalization after four-day decline in Apple’s stock. At Tuesday’s market close Microsoft’s market cap was $2.64 trillion whereas Apple’s valuation was $2.59 trillion. What Led Shift? The broader market downturn mostly resulted after President Donald Trump’s announcement of new tariffs on imports from over 100 countries. Apple faced a major hit due to its heavy dependency on China for manufacturing and supply chain operations. The Nasdaq Composite Index also fell by 13% over the last four trading days showing fears of a potential recession and rising consumer prices.  Impact Of Tariffs On Apple UBS analysts warn that if Trump’s tariffs are fully passed on to consumers the price of the upcoming iPhone 16 Pro Max could increase by $350 in the U.S. This potential price hike has raised concerns over Apple’s dependency on Chinese manufacturing. Apple Shifting Production To India? To reduce the impact of rising costs Apple is reportedly planning to relocate a portion of its iPhone production from China to India. According to a Wall Street Journal report this move is to weaken the financial impact over impostion of new tariffs. While President Trump has supported bringing manufacturing back to the U.S. Apple executives claimed that domestic production is not worth it as the associated costs will increase the expense of simply paying the tariffs. The Wall Street Journal report citing sources claimed that Apple considers these measures a ‘short-term stopgap.’ The company is still committed to its long-term supply chain strategy centered around China but recognizes the need for flexibility in the current uncertain environment. Apple Stores across the U.S. are seeing an increasing demand in iPhone sales as consumers are buying their devices before potential price hikes.