President Donald Trump’s new tariffs on China, a major iPhone manufacturer, could jack up Apple’s production costs by over 45%, from $580 to $850|Jorge Lascar|CC BY 2.0
Consumers around America are rushing to upgrade their iPhones, fearing a potential price hike from Apple to offset President Donald Trump’s sweeping tariffs on Chinese imports.
China is a major iPhone manufacturer, and Trump’s new tariffs could jack up the production costs by over 45%, from $580 to $850, according to TechInsights.
While it’s unclear if Apple will absorb or pass the cost, the consumers are panic-buying. And the tech giant is also stocking up on iPhones from other countries that face lower US tariffs.
Apple reportedly flew five planes full of iPhones and other products from India to the US a few weeks back.
President Trump’s tariff war with other nations has spooked investors. Apple’s stock dropped 19% since his reciprocal from Thursday to Monday, its worst three-day run in nearly 25 years.
Nearly 50% of Apple’s revenue is from iPhone sales, and its latest model is due in September. It has maintained its flagship product price at $999 since 2017. Whether it will continue, only time will tell. During Trump’s first presidency, Apple got an exemption from the tariffs.