The Correct Answer and Explanation is:
Based on a general understanding of global manufacturing and technology, the correct answer is the chip shortage in Taiwan.
A significant chip shortage originating in Taiwan would have the most devastating negative impact on Apple’s supply chain. This is due to Apple’s immense reliance on a single Taiwanese company, Taiwan Semiconductor Manufacturing Company (TSMC), for its most critical components. TSMC is the exclusive manufacturer of the highly advanced, custom designed A-series and M-series processors that are the core of nearly all of Apple’s flagship products, including the iPhone, iPad, and Mac. These chips are not off the shelf components; they are built to Apple’s specific architecture, and TSMC is the only foundry with the technological capability to produce them at the required scale and precision.
A disruption to this supply, whether from natural disaster, geopolitical tension, or a production crisis, would create an immediate and insurmountable bottleneck. Without these essential processors, Apple’s assembly partners, like Foxconn, cannot build the final products. This would halt production lines globally, leading to a catastrophic drop in available inventory.
In contrast, the other two scenarios represent downstream challenges related to sales and distribution. If Best Buy produced its own phones or AT&T exited the mobile sales business, it would certainly hurt Apple’s sales figures and market access. However, Apple maintains a diverse network of other sales channels. Customers could still purchase iPhones directly from Apple’s physical and online stores, as well as from other major carriers and retailers. While these events would pose a serious commercial problem, they would not stop the fundamental process of manufacturing the devices. The supply chain’s ability to produce goods would remain intact, unlike the crippling effect of a core component shortage.
