In the short term, Apple and many of its partners should carefully manage the iPhones currently stored in the US.
If you have been giving 900 and 1,000 euros to date to buy an iPhone and you have already been very high, this year you have to prepare to put your hand in the pocket even deeper. President Donald Trump’s duties in foreign goods – especially those coming from China – are expected to increase the prices of daily technology products, from iPhone to laptops, cars and even smaller gadgets such as headphones and computer mice.
According to analysts who spoke to CNN, iPhone prices could grow significantly and soon, probably In a few weeks or months. Like many technology companies, Apple’s supply chain is largely based on China, which now faces duties at least 145%, which means that products and materials from the country are sure to become more expensive.
In the short term, Apple and its many partners should to carefully manage the iPhones stock that have currently stored in the US. However, if Trump’s duties insist on, Apple may need to make long -term adjustments to the way it supplies, manufactures and even releases new products. Apple has received an exception from duties to some products during the previous Trump governance, but there has been no indication of whether such immunity will be given this time.
“I think (Apple) will have to go through a period of pain,” said Jack Leathem, an analyst at the Canalys Market Research Company covering the smartphone industry. “And that will mean … price increases.”
How could Apple face duties in the long run
The question, however, is how Apple could deal with tariffs in the long run. Trump believes that iPhone production could be transferred to the USThe White House spokesman said on Tuesday but this seems unlikely.
In recent years, Apple has transferred parts of its supply chain to India and Vietnam to reduce its dependence on China. Apple is reportedly supplying most of its iPhones to the US from India instead of China in recent days, according to reports from the Financial Times and The Times of India.
But even if it transferred its production to the US, Apple would probably still supply many of its components from Asian countries, according to Bank of America analysts in a research note on April 3.
The construction of an iPhone in the US would also be more expensive, partly due to the highest work costs, said Willy Shih, a professor of business management in Harvard Business School. Bank of America’s survey reported that will cost about 20% more To build an iPhone in the US, while Wedbush Securities analyst Dan Ives said an iPhone manufactured in the US can be as expensive as $ 3,500.
Apple announced in February that it plans to invest $ 500 billion to expand its fingerprint in the US. But iPhone factories are not part of this commitment. On the contrary, it includes new server production facilities to supply Apple Intelligence software capabilities and a Detroit Academy to train small businesses in manufacturing techniques. And the construction of new facilities can take years, and it is not clear how long Trump’s duties will remain in force.
But a bigger problem than the simple construction of a new factory may be Finding Americans who would like to work on it.
Then there is the question of whether Apple could make wider Changes to the release timetable of its products If the US is becoming increasingly demanding due to duties. This could be a possible strategy for mitigating the impact of duties, along with changes in the supply chain and price increases, Bank of America said in its report on April 3.
At present, however, Apple has not reported any change in the product line or its strategy in response to duties.
Source :Skai
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