The next iPhone can be more expensive – because of Donald Trump.
Analysts have suggested that the widespread tariffs imposed by the US president could spend $ 2,300.
New taxes are expected to increase the cost of a variety of consumer products in the United States, many of which are made and imported from countries such as China, which undergo significant new tariffs under the new regime.
Analysts show that costs can reach 30 % to 40 % – and it is unclear whether companies intend to transfer the cost to consumers.
Most technical companies have not yet commented on the impact of tariffs, which are still largely clear.
Most of the iPhones are still built in China, with a 54 percent tariff. If these taxes continue, Apple has a tough choice: attract extra fees or transfer it to customers.
The company closed 9.3 percent on Thursday and gained its worst day in March 2020.
Apple sells more than 220 million iPhones a year. Its largest markets include the United States, China and Europe.
The cheapest model of the iPhone 16 was launched in the United States at a price tag, but it can cost $ 1.142 to any calculations based on Rosenblatt analysts’ forecasts, which may increase the cost 43 % – if Apple can transfer it to consumers.
A 6.9 -inch and 1 terabyte storage iPhone 16 Pro Max, which is currently priced at $ 1599, can cost consumers to spend nearly $ 2,300 if increased by 43 percent.
In his first term as president to push US companies to bring production to the United States or around countries such as Mexico, Trump imposed tariffs for a wide range of Chinese imports, but Apple guaranteed exemption or ignorance of several products. This time, he has not yet awarded any exemption.
“The whole Chinese tariff is currently quite as opposed to our expectation that Apple’s American icon will be like the last time,” said Barton Cracket, a securities analyst.
The iPhone 16E, which was launched in February as a cheaper entry point for Apple’s artificial intelligence features, costs $ 599. A 43 % price increase could raise the cost to $ 856. The price of other Apple devices can also jump.
Apple did not respond immediately to the comment’s request. Many customers pay their phones for two or three years through contracts with their cell providers.
However, other analysts noted that the sales of the iPhone in the company’s main markets were suspicious of the company, as Apple has failed to attract buyers to attract buyers.
Expert reviews have shown that these features, while innovative, do not provide a compelling reason to justify upgrading to new models.
Recession in demand can put more pressure on Apple’s lower line, especially if the costs of tariffs increase.
Angelo Zino, a stock analyst at CFRA Research, said the company will have a tough time to cross more than 5 % to 10 % of costs to consumers.
“We expect Apple to eliminate any major increase in phones until the iPhone 17 starts, as it is usually how to deal with the price.”
Even with some products to Vietnam and India, most iPhones are still built in China, and these countries are not rescued from tariffs, and Vietnam received 46 % tax and India imported 26 %.
Apple has to raise at least 30 percent of its prices on average to offset import tasks, according to Neil Shah, founder of Research Research.
A rise in potential prices can reduce the demand for smartphones and marginalize South Korea’s Samsung Electronics, as Asia is facing lower tariffs than China, where all iPhones sold in the United States are built.
“Our fast math on the day of Freedom of Trump shows that this could detonate Apple, and potentially spend the company up to $ 40 billion,” said Rosenblatt Securities.
“It is difficult for us to imagine Trump explodes an American symbol … but that seems very hard.”
Additional report by Reuters
