{"id":278787,"date":"2025-04-10T12:58:03","date_gmt":"2025-04-10T12:58:03","guid":{"rendered":"https:\/\/news.talkwithrattan.com\/index.php\/2025\/04\/10\/will-iphones-cost-more-because-of-trumps-tariffs-on-china\/"},"modified":"2025-04-10T12:58:03","modified_gmt":"2025-04-10T12:58:03","slug":"will-iphones-cost-more-because-of-trumps-tariffs-on-china","status":"publish","type":"post","link":"https:\/\/news.talkwithrattan.com\/index.php\/2025\/04\/10\/will-iphones-cost-more-because-of-trumps-tariffs-on-china\/","title":{"rendered":"Will iPhones cost more because of Trump’s tariffs on China?"},"content":{"rendered":"
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Liv McMahon<\/span><\/p>\n

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The world’s most popular gadgets – phones, laptops, tablets, smartwatches – could be about to get a lot more expensive in the US.<\/p>\n

Many of them are made in China, which now faces a 125% tariff on its goods imported to the US, under President Donald Trump’s controversial trade policy.<\/p>\n

And the effect this may have on the iPhone and its maker Apple is under the spotlight.<\/p>\n

Some analysts say that if costs incurred by tariffs are passed onto consumers, iPhone prices in the US could rise by hundreds of dollars.<\/p>\n<\/div>\n

Where are iPhones made?<\/h2>\n<\/p>\n
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The US is a major market for iPhones and Apple accounted for more than half of its smartphones sales last year, according to Counterpoint Research<\/a>.<\/p>\n

It says as much as 80% of Apple’s iPhones intended for US sale are made in China, with the remaining 20% made in India.<\/p>\n

Along with fellow smartphone giants such as Samsung, Apple has been trying to diversify its supply chains to avoid over-reliance on China in recent years.<\/p>\n

India and Vietnam emerged as frontrunners for additional manufacturing hubs.<\/p>\n

As tariffs took effect, Apple reportedly looked to speed up and increase its production of India-produced devices in recent days.<\/p>\n

Reuters reported on Thursday<\/a> that Apple chartered cargo flights to ship more than 600 tons of iPhones from India to the US.<\/p>\n

Amid Trump’s 90-day pause on tariffs, including those levied on India, the country may be set to benefit from an iPhone manufacturing boost.<\/p>\n

The BBC has approached Apple for comment on the impact of tariffs on their operations and prices, but has not had any response yet. <\/p>\n<\/div>\n

How exposed is Apple to tariffs? <\/h2>\n<\/p>\n
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Trump and his advisors have said the aim of its tariffs are to encourage more US manufacturing.<\/p>\n

However, the tech industry relies on a global network of suppliers for product components and assembly. <\/p>\n

This, and finding skilled workers to match the fast pace and low cost of production in Asia, means relocating supply chains is no simple feat.<\/p>\n

Apple committed a $500bn investment in the US in February<\/a> – which the Trump administration believes will result in more homegrown manufacturing.<\/p>\n

But Wedbush Securities analyst Dan Ives said shifting parts of its supply chain from cheaper manufacturing hubs in Asia to the US will take a lot of time, and money.<\/p>\n

“The reality is it would take 3 years and $30 billion dollars in our estimation to move even 10% of its supply chain from Asia to the US with major disruption in the process,” he wrote on X on 3 April<\/a>.<\/p>\n<\/div>\n

Will iPhone prices go up?<\/h2>\n<\/p>\n
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Apple have not revealed yet whether they plan to pass on the costs of the tariffs onto consumers in the US and increase prices. <\/p>\n

Some analysts believe Apple is in a more fortunate position than others, having reaped more money from its products than it has spent on making them. <\/p>\n

“As a company with lucrative margins on its devices, Apple can absorb some of the tariff-induced cost increases without significant financial impact, at least in the short term,” says Forrester principal analyst Dipanjan Chatterjee.<\/p>\n

But he notes the company’s strong branding and popularity may allow it to pass some costs to consumers without too much backlash.<\/p>\n

“The brand commands better loyalty than its competitors, and it is unlikely that a manageable price increase will send these customers fleeing into the arms of Android-based competitors.”<\/p>\n

Some estimates suggest iPhone prices in the US could as much as triple if costs were passed to consumers. <\/p>\n

Following Trump’s tariff increase on China to 125%, the cost for a China-made iPhone 16 Pro Max with 256GB storage would have surged from $1,199 to $1,999, according to estimates by investment banking firm UBS. <\/p>\n

They estimate a less significant increase on the iPhone 16 Pro 128GB storage – which is made in India – by five percent from $999 to $1046.<\/p>\n

While some analysts such as Dan Ives have suggested that the cost of a “Made in USA” iPhone could soar to as much as $3500. <\/p>\n<\/div>\n

What can consumers do about it?<\/h2>\n<\/p>\n
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There’s still plenty of uncertainty about what happens next, and how companies like Apple will respond to tariffs remains to be seen. <\/p>\n

This hasn’t stopped some US customers reportedly rushing to Apple stores to buy its smartphones<\/a>.<\/p>\n

And we will likely have to wait until the autumn to see how much the next iPhone will cost.<\/p>\n

But if it looks like costs incurred by tariffs will result in higher price tags, some may look to rival handsets or second-hand devices.<\/p>\n

The iPhone remains one of the most expensive smartphones on the market – and brands such as Google and Samsung offer phones with similar features at a lower cost.<\/p>\n

The other option, and perhaps the most cost-effective, could be to skip upgrades to newer iPhone models and look to slightly older, cheaper versions.<\/p>\n<\/div>\n<\/div>\n


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