Apple rushes to find a solution after President Donald Trump announced new prices on Chinese imports. The reciprocal prices for a number of countries were to take effect on April 9, but Trump granted a 90 -day stay for most of them. However, it imposed a 104% rate on Chinese products, which increased it later to 125% on the same day, the increase taking effect immediately.
These prices should have a significant impact on Apple, which manufactures most of its devices in China, like most other technological and AI companies. Iphones represent approximately half of Apple's income, much more than any other product. The iPhone is the most popular smartphone in the United States, holding a market share of more than 50%.
What will an iPhone cost with new prices?
Well -known technological analyst Dan Ives said to CNN That these prices could create a “category 5 price storm” for personal electronics, including iPhones. He compared Chinese goods at such high rates to “overthrow a boat backwards in the ocean without life rafts” – which means that few technological companies, including Apple, have viable manufacturing alternatives outside China.
The alleged tariff objective is to bring more manufacturing to the United States, but Ives said it would increase prices exponentially. He estimated that a Chinese manufacturing device sold for around $ 1,000 would cost $ 3,500 if it was made in the United States, a price that many consumers may not be able to afford. The displacement of the Apple supply chain to the United States would also take years, making it a short-term solution impractical for the company and for consumers wishing to go to the last iPhone. Given these drawbacks, it is unlikely that Apple will change its manufacture in the United States.
While the tariff landscape continues to change, the estimate of future iPhone prices remains difficult. However, UBS analysis on Wednesday revealed that reciprocal prices could increase the price of the iPhone 16 Pro Max 256 GB, which is made in China, by about $ 675, an increase of 56%. The iPhone 16 Pro Max is the most advanced model currently available and has artificial intelligence capacities.
If Apple can move its production to India, which is currently excused by reciprocal rates, this could potentially help compensate for part of the price increase. This same UBS analysis revealed that the cost of an iPhone 16 Pro 128 GB costs $ 999 when made in India could increase to $ 1,119, a more modest increase of 12%.
Given these drawbacks, it is unlikely that Apple will change its manufacture in the United States, although continuous production in China can be too expensive for the company or consumers to be able to bear.
