The trade dispute between the US and China threatens to increase production costs; customs tariffs could affect the cost of the iPhone 17, UNN reports with reference to Newsweek.
Details
Analysts 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 increased tariff threats against Chinese-made goods.
The White House is following a plan to move technology production to the US. This creates pressure on Apple's global supply chain.
For reference: it should be understood that the production of Apple Inc. products is largely based in China, and more recently, in India. In the concept of Washington's policy, Apple faces a 25% import duty for iPhones supplied to the US. This could significantly increase prices.
To cope with this, the iPhone manufacturer should "successfully" relocate production chains and plan for the necessary "absorption" of costs.
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 for its high-end variant - $1200.
Tariff-related increases could significantly boost these figures
Tariffs, supply chain, and iPhone 17 cost - expert opinions
The cost of a modern iPhone made in the US would be about $3500, says Dan Ives, global head of tech research at Wedbush.
Also, back in 2018, investor Glenn Luck 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- widespread perceptions that China is a technology hub due to cheap labor are outdated. But China's workforce is better trained for the needs of the iPhone production line.
Recall
On September 9, Apple will unveil a new family of iPhone devices at the "Awe Dropping" event. The new lineup is expected to reflect Apple's previously planned "radical" transformations