“Trump’s tariffs increase the cost of new iPhones: for the first time in 5 years, the cost of Apple products may significantly increaseThe trade dispute between the US and China threatens to increase Apple’s production costs. Prices for iPhone 17 may rise by $50-100 due to a 25% import duty.
”, — write: unn.ua
DetailsAnalysts believe that Apple may implement a full price increase for the first time in five years, with prices for some models rising by $50-100. Currently, Apple’s position is experiencing “external pressure” from trade opposition, amid Trump’s intensified tariff threats on Chinese-made goods.
The White House is following a plan to relocate technology production to the US. This creates pressure on Apple’s global supply chain.
For reference: it should be understood that Apple Inc.’s product manufacturing is largely based in China, and more recently, it has been expanding into India. Under Washington’s policy concept, Apple faces a 25% import duty for iPhones supplied to the US. This could significantly increase prices.
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To cope, the iPhone manufacturer should “successfully” relocate production chains and plan for the necessary cost “absorption.”
Tim Cook, Apple’s CEO, has tried to mitigate the impact on costs by expanding manufacturing operations in India. Apple is also relocating large batches of iPhones to the US before tariffs take effect.
According to statistics, since 2020, Apple has charged $800 for the basic iPhone model and $1200 for its high-end variant.
A tariff-related increase could significantly boost these figures
Tariffs, supply chain, and iPhone 17 cost — expert opinionsThe cost of a modern iPhone manufactured in the US would be around $3500, according to Dan Ives, global head of technology research at Wedbush.
Also, back in 2018, investor Glenn Luke noted that moving all iPhone production to the US would lead to price increases in the range of “$30,000 to $100,000.”
The argumentation is as follows:
- the skill set of American workers differs strikingly from the qualifications in technology-exporting countries;
- there will not be the workforce needed for mass production of iPhones if they are only delivered to the US;
- widespread notions that China is a technological hub due to cheap labor are outdated. But China’s workforce is better trained for the needs of the iPhone production line.
RecallOn September 9, Apple will present a new family of iPhone devices at the “Awe Dropping” event. The new lineup is expected to reflect Apple’s previously planned “radical” transformations