Between $2007$ and $2012,$ Apple introduced one iPhone each year $($see Exhibit $7).$ As one supplier stated, the company thrived on "the beauty of simplicity. It was very few models at massive volumes." ${?}^{49}$ Beginning in $2013,$ the company introduced two iPhones $($iPhone $5C$ and S$)$ each year, and in $2016$ began introducing three models each year $($e$.$g$.,$ in $2019,$ Apple introduced the iPhone $11,11$ Pro, and $11$ Pro Max$).{?}^{50}$ Furthermore, some older models continued to be sold in stores for as long as three to four years after their introduction date. These models were sold at steep discounts compared to the newer models, which could cost more than $$1,000($see Exhibit $8).$ The proliferation of products available to consumers made it increasingly difficult to gauge demand and provide suppliers with accurate forecasts, complicating supply chain coordination. An executive at one Apple supplier observed, "Growth fixes a lot of sins$.$ When it slows, rocks start to show up in the bottom of the ocean." $51$

With its huge volumes, many suppliers had become dependent on the iPhone for sales. Among $40$ Asianbased Apple suppliers, Morgan Stanley estimated that $18$ of the companies depended on the iPhone for $30$ per cent or more of annual revenues. The iPhone also accounted for more than one$-$third of the revenues for US$-$based chip suppliers Qorvo and Skyworks Solutions, Inc. ${?}^{52}$

Meanwhile, the Chinese government had benefitted from Apple's presence in China during the past two decades as it developed a new generation of technology suppliers. Although Apple directly employed only $10,000$ people in China, it was estimated that approximately $5$ million Chinese jobs relied on Apple, including contract manufacturers and software and app developers. ${?}^{53}$