Apple is encrypted to find out a solution after President Donald Trump announced sweeping new tariffs on Chinese imports. Mutual tariffs for a number of countries were set to take effect on April 9, but Trump awarded a 90-day postponement to most of them. However, he imposed a 104% duty on Chinese goods and later raised it to 125% on the same day the increase immediately came into force.
These tariffs are expected to affect Apple significantly, which manufactures most of its devices in China, just as most other tech and AI companies. IPhones account for about half of Apple’s revenue, far more than any other product. IPhone is the most popular smartphone in the US and has a market share of more than 50%.
What does an iPhone cost with the new tariffs?
Well-known tech analyst Dan Ires told CNN that these tariffs could create a “Category 5 Price Storm” for personal electronics, including iPhones. He compared the taxation of Chinese goods with such high rates to “turn a boat upside down in the sea without life rafts” – which means getting tech companies, including Apple, have viable production options outside China.
The alleged purpose of the tariffs is to drive more manufacture back to the United States, but IVES said this would raise prices exponentially. He estimated that a Chinese -made device that sold for about $ 1,000 would cost $ 3,500 if made in the US a price point that many consumers may not be able to afford. Changing Apple’s supply chain to the United States would also take years, making it an impractical short -term solution for the company and for consumers who are eager to upgrade to the latest iPhone. Given these disadvantages, Apple is unlikely to change its presentation to the United States.
As the customs landscape continues to change, the future iPhone prices remain difficult. However, an analysis from UBS on Wednesday found that the mutual tariffs could increase the price of the iPhone 16 Pro Max 256GB conducted in China, by approx. $ 675, an increase of 56%. The iPhone 16 Pro Max is the most advanced model that is currently available and contains artificial intelligence features.
If Apple can move its production to India currently excused for mutual tariffs, it can potentially help offset some of the price increases. The same analysis from UBS found that the cost of an iPhone 16 Pro 128 GB costs $ 999 when done in India could increase to $ 1,119, a more modest increase of 12%.
Given these disadvantages, Apple is unlikely to change its manufacture to the United States, although the continued production in China may be too expensive for the company or consumers to carry.