Apple is struggling to discover a solution after President Donald Trump announced new sweeping rates on Chinese imports. The reciprocal tariffs for several countries entered into force on April 9, but Trump granted a 90 -day break for most of them. However, he imposed a 104% rate in Chinese products, then increased 125% on the same day, and the increase in validity in force immediately.
These tariffs are expected to significantly affect Apple, which manufactures most of its devices in China, as well as most other technological and artificial intelligence companies. The iPhones represent approximately half of Apple's income, much more than any other product. The iPhone is the most popular smartphone in the US., With a market share of more than 50%.
What will an iPhone cost with the new rates?
The well -known technology analyst Dan Iives told CNN that these rates could create a “category 5 pricing storm for personal electronics, including iPhones. He compared to tax Chinese products at high rates with “turning a boat upside down in the ocean without life rafts”, which means that few technological companies, including Apple, have viable manufacturing alternatives outside China.
The supposed purpose of tariffs is to bring more manufacturing to the United States, but IVES said this would raise prices exponentially. He estimated that a Chinese manufacturing device that was sold for around $ 1,000 would cost $ 3,500 if it is manufactured in the US, a price that many consumers can pay. Changing Apple's supply chain to the United States would also take years, so it is a short -term practical solution for the company and for consumers anxious to update to the last iPhone. Given those inconveniences, Apple is unlikely to change its manufacture to the United States.
As the tariff panorama continues to change, estimate future iPhone prices is still difficult. However, an UBS analysis on Wednesday discovered that reciprocal rates could increase the price of iPhone 16 Pro Max 256GB, which is carried out in China, in approximately $ 675, an increase of 56%. The iPhone 16 Pro Max is the most advanced model currently available and has artificial intelligence capabilities.
If Apple can transfer its production to India, which is currently excused from reciprocal tariffs, that could help compensate for part of the price increase. That same UBS analysis discovered that the cost of an iPhone 16 Pro 128 GB, costs $ 999 when obtained in India, could increase to $ 1,119, a more modest increase of 12%.
Given those inconveniences, it is unlikely that Apple changes its manufacture to the United States, although continuous production in China can be too expensive for the company or consumers to support it.
