Home / Others / Advantageous rates could make Apple iPhones even more expensive

Advantageous rates could make Apple iPhones even more expensive



Such a measure would harm US consumers and US companies as taxes would be levied on goods upon entry. Apple should decide whether to increase its prices to compensate.

"The direct impact would be in the United States," said Bryan Ma, an analyst at IDC's research firm. "If things go wrong, 25% on a $ 1,000 phone is not kidding, no matter if Apple absorbs some or much of it is passed on to the consumer."

Trump said the tariff could be 10% to 25%, declaring to The Wall Street Journal earlier this week: "I can do it at 10%, and people could bear it very easily."

He wants Apple (AAPL) to build and manufacture iPhones in the United States. But move a complex global supply chain from Asia is extremely difficult and highly improbable.

Even if it could be done, more expensive American work and production facilities would seriously increase the cost of the iPhone, according to Tim Bajarin, president of Creative Solutions.

"If they were making smartphones in the United States, it would increase the final price of phones sold to the public by 20% to 35%," he said.

At the top of the Bajarin range, it would be an extra $ 350 on the basic iPhone X. This means that moving the production of the iPhone to the United States would cost more than absorbing the tariffs threatened by Trump.

Trump tests his bargaining powers in a confrontation with Xi
Apple (AAPL) buys parts from companies around the world before shipping them to China, where most iPhones are assembled by the Taiwanese manufacturer Foxconn.
The memory chips come from the Japanese Toshiba (TOSBF), German Bosch sensors and Samsung Display Modules (SSNLF) in South Korea.
A number of key components also come from American companies. Corning (GLW), a Kentucky-based company, supplies iPhone screen glass, the Finisar (FNSR) plant in Texas manufactures laser scanners used by Apple's face IDs and animated emoticons, and Analog Devices (ADI) in Massachusetts produces touch-screen chips.
Trump reduces the hopes of a trade deal with the new tariff threat on Apple phones
According to the Information Technology Industry Council, a group that represents more than 60 high-tech companies, including Amazon (AMZN) and Facebook (FB).

"This would further threaten global supply chains, resulting in higher prices for the electronic devices that people rely on every day and even the loss of US jobs," said Jose Castaneda, spokesman for the group. .

Do not panic for the moment on iPhone sales

Apple says the essential research and design for the iPhone and other devices is done in the United States. But the country lacks skilled manpower to manufacture these products, according to CEO Tim Cook.

"Our products require truly advanced tooling, and the precision you must have in tooling and the work of the equipment we manufacture is at the cutting edge of technology," said Cook in an interview with Fortune. ;last year.

"In the United States, you could have a meeting of tooling engineers and I'm not sure we can fill the room In China, you could fill several football fields," he said.

Apple has other options in Asia

Plus, Apple does not have to bring back the making of its iPhone home to bypass Trump's tariffs.

Some of Apple's competitors have tweaked their production, retaining the basic manufacturing of telephones, computers or televisions in China, but performing the final assembly in places like Taiwan, Vietnam or Malaysia ., said Bajarin.

Trade war pushes business out of China, but not in America

"It would help them avoid the prices of products shipped directly from China," he said.

Trump's efforts to bring back such jobs to the US are futile, according to Bajarin.

"The United States lost its place in the manufacturing sector decades ago, especially in the consumer electronics arena, and it will never come back."


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