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President Donald Trump is considering new tariffs on China that could make iPhones much more expensive for Americans.
Trump said this week it would not rule out a series of additional tariffs on Chinese exports that would affect Apple's flagship product as well as laptops.
Such a measure would harm US consumers and US companies as taxes would be levied on goods upon entry. Apple should decide to raise prices to compensate.
"The direct impact would be in the United States," said Bryan Ma, an badyst at IDC's research firm.
"If things go bad, 25% on a $ 1,000 phone is not kidding, it does not matter if Apple absorbs a part or if it is largely pbaded on to the consumer."
Trump said the tariff could be 10% to 25%, reporting to the Wall Street Journal earlier this week: "I can earn 10%, and people could bear it very easily."
He wants Apple (AAPL) to build and manufacture iPhones in the United States. But moving a complex global supply chain from Asia is extremely difficult and highly improbable.
Even if it were possible to do so, the costly labor and US 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, that would represent an additional 20% to 35% increase in the final prices of phones sold to the public," 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.
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