As noted in the article, the Trump administration promised that the result of the introduction of import tariffs would be that a large number of industries are ultimately “relocated” in the United States, which would give work to millions of Americans.
The head of the technological research department in the financial company Wedbush Securities Dan Ives said in a CNN comment that American -made iPhone can cost more than three times more, their current price is approximately $ 1 thousand.
He noted that Apple will need three years and $ 30 billion to transfer at least 10% of its US supply chain.
The media notes that the prices for iPhone can increase, even if the supply chains remain unchanged. Rosenblatt Securities predicts that the iPhone may rise in price by 43%if Apple completely transfers the costs of tariffs for consumers.
Neil Shah, the vice president of the Counterpoint Research Research Company, believes that the price can increase by 30%, depending on the place of production.
Journalists add that Apple is already trying to transfer part of the production from China to India (production is taxed with tariffs of 26%) and Brazil (production is taxed with tariffs of 10%). However, the Shah notes that the production capacities of Brazil are probably insufficient for the full replacement of China.
Bank of America analysts, led by Visi Mohan, noted that the cost of the iPhone can grow by 25% solely due to the higher value of labor in the United States, Bloomberg wrote.
Although Apple can find internal labor for assembling devices, a significant part of the parts that are used for the production of the iPhone will still be assembled in China and imported to the United States, they added to Bank of America.
Analysts emphasized that if we assume that Apple will have to pay the corresponding tariffs for this import, its total cost will increase by 90% or more.
Context
CNN recalls that the production of smartphones has long been moved to Asia, since American companies focused on the development of software and design of products that bring higher profits. Such a strategy helped Apple to become one of the most valuable companies in the world.
The channel writes that since the inauguration of Trump in January, Apple shares have lost about 25% of the cost due to anxiety about the influence of tariffs on its global supply chain, especially from China and Taiwan. Approximately 90% iPhone is collected in China.
On April 2, Trump announced the introduction of duties on the import of goods from many countries, their level – from 10% to 49%.
A number of countries of countries condemned new global mutual duties, including China.
The American president introduced an additional 34 percent tariff for Chinese goods within high duties imposed on most US trading partners, bringing total duties for China this year to 54%. China responded with a countermer series, reported by Reuters. After that, the United States and China several times introduced additional duties to each other.
On April 9, it became known that in response to Trump’s tariff policy, China raised to 84% of the duty on American goods.
On April 10, the White House said that the US tariffs for Chinese goods are now 145% after the last increase.
