Does iPhone cost more because of Trump’s tariff for China?

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By [email protected]


Lev McMahon

Technology correspondent

Reuters, the hands of the woman showed the Blue IPHONE 16 phone, at a launch event in September.Reuters

The world’s most popular tools – phones, laptops, tablets and smart watches – can be about to get a lot of things in the United States.

Many of them are made in China, which is now facing a 125 % tariff for its imported goods to the United States, during the reign of President Donald Trump’s controversial policy.

The effect this might have on iPhone and its manufacture of Apple below the lights – where some analysts say if the costs are transferred to consumers, the prices of iPhone in the United States may increase hundreds of dollars.

If the definitions affect the value of the dollar, it may become more expensive to import iPhone devices and other devices around the world – which may lead to high prices of stores in the United Kingdom.

Where do you make iPhone?

The United States is a major market for iPhone, and Apple is more than half of its sales for smartphones last year, According to CounterPoint Research.

It says up to 80 % of iPhone devices in Apple for sale in China, with 20 % remaining in India.

Along with their fellow smart phone giants such as Samsung, Apple tries to diversify their supply chains to avoid excessive dependence on China in recent years.

India and Vietnam have emerged as painters for additional manufacturing centers.

As the definitions are valid, Apple is looked forward to accelerating and increasing its production of the devices produced by India in recent days.

Reuters It was mentioned on Thursday These flights to charge Apple to charge more than 600 tons of iPhone from India to the United States.

In the midst of Trump for 90 days on customs duties, including those imposed on India, the country may be appointed to take advantage of the IPHONE manufacturing boost.

BBC called on Apple to comment on the impact of definitions on its operations and prices, but she had no response yet.

A chart that shows how Apple can be affected by tariffs. It includes information in this article, but provided with pictures of the iPhone, the countries and a ship.

How much Apple is definitions?

Trump and his advisers said that the goal of tariffs is to encourage more American manufacturing.

However, the technology industry depends on a global network of suppliers for products and assembly components.

This, and the creation of skilled workers to match the fast speed and the low cost of production in Asia, means that the transfer of supply chains is not a simple matter.

apple He committed an investment of $ 500 billion in the United States in February – The Trump administration believes to lead to more local manufacturing.

But the Wedbush Securities Dan IVES analyst said that the transfer of parts of the supply chain from the cheapest manufacturing centers in Asia to the United States will take a lot of time and money.

“The truth is that it will take 3 years and 30 billion dollars in our estimation to move up to 10 % of its supply chain from Asia to the United States with great disturbance in this process,” He wrote on X on April 3.

Will the iphone prices rise?

Apple has not yet been revealed whether they were planning to pass the costs of definitions on consumers in the United States and increase prices.

Some analysts believe that Apple is more fortunate than others, as it made money more than its products than it has spent on making it.

“As a company with profitable margins on its devices, Apple can absorb some of the costs caused by customs tariffs without a major financial influence, at least in the short term,” says Forster Depangan Chattage analyst.

But he notes that the strong brand of the company and its popularity may allow it to pass some costs for consumers without a very violent reaction.

“The brand imagines better loyalty than its competitors, and it is unlikely to send the price -can be controlled by these clients fleeing the arms of competitors who depend on the Android system.”

Some estimates indicate that the iPhone prices in the United States can suit three times if the costs are transferred to consumers.

After increasing the Trump tariff in China to 125 %, the cost of the Chinese iPhone 16 MAX with a storage of 256 GB has increased from $ 1,199 to 1999 dollars, according to estimates of the UBS investment services company.

They appreciate the lowest importance in storing iPhone 16 Pro 128GB – which is in India – by five percent from $ 999 to $ 1046.

While some analysts, such as Dan Evz, suggested that the cost of “made in the United States of America” ​​may rise to $ 3500.

What can consumers do about it?

There is still a lot of uncertainty about what is happening after that, and how companies like Apple will respond to definitions.

This did not stop some American customers According to what was rushed to Apple stores to buy its smartphones.

We will likely have to wait until the fall to see how much the following iPhone will cost.

But if it seems that the costs incurred by the customs tariff will lead to high prices, some may look forward to competing phones or used devices.

IPhone remains one of the most expensive smartphones on the market – brands such as Google and Samsung offer phones with similar features at a lower cost.

The other option, and perhaps the most effective effective, can be skipping upgrades to the latest iPhone models and searching for slightly older versions and cheaper.

Additional reports by Paul Sargent.



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