Tariffs' impact may drive iPhone’s prices up to $3500 for US consumers
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With the latest wave of tariffs, analysts estimate that in the United States, Iphone's prices could rise to around 3500 dollars if production were to move to the US. President Trump had already mentioned that US tariffs would bring many factories and manufacturing plants back to the US, creating millions of jobs, yet according to many industry experts, this would be a watered-down version of what would actually happen with the new tariffs.
Currently, the production chain for iPhones is located in Asia, and replicating – especially quickly and within the US – the complex production ecosystem found overseas would be extremely challenging. Estimates suggest that for Apple, moving 10% of the production chain to the US could cost as much as 30 billion dollars, and the entire process would take 3 years.
However, Apple is already facing a challenging moment: since the beginning of Trump’s second term, the company has lost about 25% of its value, due to concerns arising from the US-China trade war and its impact on the production and supply chains – 90% of iPhones are assembled in China, chips inside them are made in Taiwan, and screens are produced in South Korea. Meanwhile, Apple's already preparing to produce in the U.S. as the company had announced an investment plan in February, spread over 4 years, worth 500 billion dollars.
Currently, the production chain for iPhones is located in Asia, and replicating – especially quickly and within the US – the complex production ecosystem found overseas would be extremely challenging. Estimates suggest that for Apple, moving 10% of the production chain to the US could cost as much as 30 billion dollars, and the entire process would take 3 years.
However, Apple is already facing a challenging moment: since the beginning of Trump’s second term, the company has lost about 25% of its value, due to concerns arising from the US-China trade war and its impact on the production and supply chains – 90% of iPhones are assembled in China, chips inside them are made in Taiwan, and screens are produced in South Korea. Meanwhile, Apple's already preparing to produce in the U.S. as the company had announced an investment plan in February, spread over 4 years, worth 500 billion dollars.