iPhone price hike due to Trump's tariffs..!?

In this context, the comments made by Dan Ives, Global Head of Tech Research at Wedbush Securities, are worrying. In his speech, US President donald trump expressed hope that American jobs and factories will return through global tariffs. However, experts warn that this policy could have a serious impact on American consumers, especially in the case of technology products. In this context, the comments made by Dan Ives, Global Head of Tech Research at Wedbush Securities, are worrying. If apple moves its iphone production to the US, the price of each device will reach about $3,500 (about Rs. 3 lakh), he told CNN. This is three times more than the current average price (Rs. 1 lakh).
“It’s very expensive for apple to build a complex supply chain in the US, including factories that make high-end chips and components in places like West virginia or New Jersey. That’s why iPhones cost up to $3,500,” Ives explained. He also made it clear that “manufacturing is not going to come back overnight.” Ives estimates that it would cost apple about $30 billion to move just 10% of its supply chain to the US and that it would take at least three years. The iphone supply chain is currently deeply rooted in Asia. While chips are made in taiwan and displays in South Korea, about 90% of the final assembly of iPhones takes place in China.
Apple stock has already fallen by 25% on fears that supply chain disruptions could occur due to Trump’s tariff pressure. Ives believes that apple is the company most directly affected by the tariff war. He described it as "economic devastation." However, apple has announced plans to invest $500 billion in the US over the past four years to mitigate the impact of the tariffs. The company is also looking at countries like india and brazil to reduce its reliance on China. But these countries also have their own tariffs and production capacity constraints. india has a 26% tariff, while brazil has a 10% tariff. Moreover, neither country can replace China's massive production capacity.

Tech analysts have come to the consensus that iphone prices are likely to rise whether or not apple changes its supply chain. Rosenblatt Securities estimates that iphone prices could rise by as much as 43% if apple passes the full burden of the tariffs on to consumers. Counterpoint Research's Neil Shah, however, predicts a 30% price increase, depending on where manufacturing is moved. Trump's tariff policy, aimed at bringing back American manufacturing, could have unintended consequences. It will not only raise consumer prices but also call into question the viability of high-tech production in America.
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Sowmiya Sriram

10/04/2025 02:59 PM