World turmoil but also dominoes of appreciation, it seems that the Donald Trump After the sweeping duties it has imposed on all countries of the world. Many goods are expected to get the uphill and obviously all consumers think about what will happen to already expensive products. Within them obviously are the iPhone.
With its analysis Reuters is trying to predict the price that Apple’s mobile, iPhone, after their duties that Donald Trump announced that he will impose on many countries around the world.
As the analysis states, the iPhones could be among the biggest ‘victim» Donald Trump’s duties announced to the show at the White House Garden, with increases that will reach 30% to 40% If the company passes the cost to consumers.
Most iPhones are still manufactured in China, which was hit with a 54%duty. Earlier but on Friday, China responded with 34% duties to all US productsmaking the future of those who have come to Apple, and not only.
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On Thursday and after the duties imposed by Donald Trump, The company’s shares fell 9.3%, marking their worst day since March 2020.
Apple sells more than 220 million iPhones per year- its largest markets include the US, China and Europe.
The cheapest iPhone 16 model was released in the US with price $ 799but could cost up to $ 1,142according to calculations based on Rosenblatt Securities’ analysts, who say the costs could increase by 43% – if Apple is able to take it to consumers.
A more expensive iPhone 16 Pro Max, with a 6.9 -inch display and 1 terabyte storage space, which is currently sold in $ 1599, could cost almost $ 2.300though again the 43% increase was passed on to consumers.
Donald Trump imposed duties on a wide range of Chinese imports during his first term as president to pressure US companies to restore production either to the US or to nearby countries, such as Mexico.
Apple secured exceptions or exemptions for several products. This time, it has not yet granted any exception.
“All this issue with China’s duties is currently evolving completely with our expectation that the American Apple image would be with the glove, as the previous time,” said Barton Crockett, a Rosenblatt -based analyst.
The iPhone 16E, released in February as the cheapest model of the new iPhone series that have integrated artificial intelligence features, costs $ 599.
An increase in price by 43% could raise this cost to $ 856. The values of other Apple devices could also jump.
Angelo Zino, CFRA Research’s stock analyst, said that The company will find it difficult to pass consumers more than 5% to 10% of costs.
“We expect Apple to postpone large increases in phones by autumn, when the iPhone 17 is to be released, as it usually handles the programmed price increases.”
Even with the movement of part of production in Vietnam and India, most of the iPhones are still manufactured in China, and these countries did not even escape the duties, with Vietnam receiving a 46% contribution and India reaching 26%.
OR Apple should raise its prices by at least 30% On average to compensate for import duties, according to Counterpoint Research Neil Shah co -founder.
A potentially sharp increase in prices could reduce demand for iPhone and give to the Samsung Electronics of South Korea advantageas the Asian country faces lower duties than China, where all iPhones are manufactured in the US.
“Our fast mathematics on the day of Donald Trump’s duty liberalization show that this could air Apple in the air, possibly costing the company up to $ 40 billion,” Rosenblatt’s Crockett said, adding that the negotiations between Apple and Apple.
“It is difficult for us to imagine Trump blowing up an American idol … but that seems quite tough,” he continued.