Staggering price of new iPhone after Trump's tariffs
Or better pay your taxes on time in China.
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I am sure you like the new iPhone, or you are waiting for the newest version of it. A lot of the girls here in China love it too, and it is on the wish list of many children here. But maybe in the future a lot of Chinese may switch to Huawei, and the USA might lose an important market.
Staggering price of new iPhone after Trump's tariffs
Apple’s iconic iPhone could soon become prohibitively expensive, with prices potentially doubling to $3,500 due to President Donald Trump’s newly imposed tariffs, according to Wedbush Securities analyst Dan Ives. The warning comes as Trump’s 54% tariff on Chinese imports threatens to disrupt Apple’s supply chain, with nearly all iPhones currently assembled in China.
“For U.S. consumers, the era of the $1,000 iPhone as one of the world’s most accessible premium devices could be coming to an end,” Ives said. He emphasized that manufacturing iPhones domestically—despite political rhetoric—is financially unfeasible. “If consumers want a $3,500 iPhone, we should make them in New Jersey or Texas. But at $1,000, the math simply doesn’t add up.”
Apple announced a $500 billion investment in the U.S. in February to stabilize costs, but Ives cautioned that shifting even 10% of its supply chain from Asia to the U.S. could take three years and cost $30 billion, with significant disruptions along the way. “The reality is that U.S. labor markets, tech infrastructure, and skilled workforce are ill-equipped to support Apple’s complex manufacturing demands,” he noted.
Trump’s tariffs, part of a broader effort to reshore manufacturing, have already strained global trade dynamics. While Apple secured exemptions during Trump’s first term, CEO Tim Cook has not yet secured waivers this time. Analyst Barton Crockett of Rosenblatt Securities remarked, “Apple’s treatment under these tariffs is surprisingly harsh, defying expectations that the tech giant would be spared.”
Apple sells over 220 million iPhones annually, with key markets including the U.S., China, and Europe. The cheapest iPhone 16 currently retails at $799, but Ives predicts prices could exceed $1,500 by this fall. If realized, the hike would align the iPhone with Apple’s Vision Pro headset, which struggled due to its $3,500 price tag.
While Apple may produce niche products like high-end Macs in the U.S., Ives stressed that tariffs in their current form risk either crippling U.S. sales or forcing prices to “unthinkable levels.” For now, the iPhone’s affordability—and Apple’s market dominance—hangs in the balance.
Link: https://mp.weixin.qq.com/s/hTy3Bd5sAzsBYn91SVHM3Q
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