Will iPhones cost more because of Trump's tariffs for China?


Liv McMahon

Technological reporter

Reuters's hands of the woman shown, squeezing two blue phones on the iPhone 16 at an event to launch in September.Reuters

The most popular gadgets in the world – phones, laptops, tablets, smart watches – can be about to become much more expensive in the United States.

Many of them have been made in China, which is now facing 125% tariff for its goods imported into the US under the controversial trade policy of President Donald Trump.

The effect it can have on the iPhone and its Apple manufacturer is under the spotlight – with some analysts saying that if the costs are transferred to consumers, iPhone prices in the US can rise by hundreds of dollars.

And if the tariffs affect the value of the dollar, it can be more expensive to import iPhone and other devices around the world -potentially to lead to higher prices in the United Kingdom stores.

Ben Wood of CCS Insight told the BBC that if the tariffs remain in effect, Apple can raise iPhone prices globally when the next iteration launches.

“It is unlikely that the company will want to differentiate globally pricing,” he said, as the technology giant would like to avoid people to buy the device cheap in the UK and sell it with profit in the United States.

Although others say They believe that this can lead to more expensive prices if the companies that usually send their goods to the United States shall instead send them to countries that do not have such steep rates as the UK.

And there may be a significant change if the price of tariffs is transferred to consumers worldwide – longer contracts for distribution of the price of the device.

While the telephone contract can usually last two years, Mr. Wood said some companies were already offering four years of deals and he believed that “we can see five years of contracts” in 2025.

“One can claim that it is almost like having a mortgage for your smartphone,” he said.

Where are iPhone made?

The US is a major market for the iPhone, and Apple represents more than half of its smartphone sales last year, According to Counterpoint ResearchS

It states that 80% of Apple's iPhone for sale in the United States are made in China, with the remaining 20% ​​being made in India.

Together with fellow smartphones such as Samsung, Apple is trying to diversify its supply chains to avoid China's over -religiosity in recent years.

India and Vietnam emerged as the leaders for additional production centers.

As the tariffs have come into force, Apple refers to accelerating and increasing the production of devices manufactured in India in recent days.

Reuters reported on Thursday The fact that Apple has recorded freight flights to deliver more than 600 tonnes of iPhone from India to the United States.

Against the backdrop of Trump's 90-day pause on tariffs, including those imposed on India, the country can be assigned by the impetus to the iPhone production.

The BBC addressed Apple to comment on the impact of tariffs on their operations and prices, but it has not yet had an answer.

A diagram showing how Apple can be influenced by tariffs. It includes information in this article, but presented with photos of iPhone, countries and ship.

How much is Apple to Tarifs?

Trump and his advisers said the purpose of his tariffs was to encourage more US production.

However, the technology industry relies on a global network of product components and assembly suppliers.

This and finding qualified workers to match the fast pace and the low production price in Asia means that moving the supply chains is not a simple feat.

Apple made an investment of $ 500 billion (£ 385 billion) in the United States in February – which the Trump administration thinks will lead to more home -made production.

But Wedbush Securities analyst Dan Ives said the displacement of parts of the supply chain from more expensive production centers in Asia in the US would take a lot of time and money.

“The reality is that it will take 3 years and $ 30 billion in our estimate to move even 10% of the Asia supply chain to the US with major process disturbances,” he Written on X on April 3S

Will the iPhone prices rise?

Apple has not yet revealed whether they are planning to transfer the costs of tariffs to US consumers and increase prices.

Some analysts believe that Apple is in a more sophisticated position than others, reaping more money than its products than it spent on creating them.

“As a company with lucrative margins on its devices, Apple can absorb some of the increase in cost -caused costs, without significant financial impact, at least in the short term,” says the chief analyst of Forrester Dipanjan Chatterjee.

But he notes that the strong brand and popularity of the company can allow it to transfer some consumers' costs without too much a turn.

“The brand commands better loyalty than its competitors and it is unlikely that the manageable price increase will send these customers to run into the arms of Android-based competitors.”

Some estimates suggest that iPhone prices in the US could be triple if the costs are transferred to consumers.

Following an increase in Trump's tariffs to China to 125%, the cost of an iPhone 16 Pro Max with 256GB of storage created by China would pop up from $ 1.199 to $ 1.999, according to the UBS investment banking company forecasts.

They evaluate an less significant increase in the storage of the iPhone 16 Pro 128GB – which is made in India – by five percent from $ 999 to $ 1046.

While some analysts like Dan Ives suggest that the price of the iPhone “made in the US” can rise to $ 3,500.

What can users do about it?

There is still a lot of uncertainty about what happens afterwards and how companies like Apple will react to tariffs, it remains to be seen.

This has not stopped some US customers It is reported to rush to Apple stores to buy your smartphonesS

The BBC talks with buyers in front of an Apple store in New York, which has bought products from fear of a potential price increase.

Anthony Cassioppo, a 53-year-old DJ and a security technician, purchased the new iPhone.

“I really didn't need a phone … But I'm not ready to double the price,” he said.

Bruce Contee, a hairdresser, told the BBC that even if prices had risen significantly, he would “get stuck with Apple's products” – although potentially delayed his purchase on a new iPad.

“I bought it because the tariffs come, I want to buy before the prices will rise and I expect them to do it,” said Julia Bauman, editor of personal finance, her new MacBook.

Julia dressed in black fluffy and yellow scarf outside the Apple store on the 5th Avenue in New York

Julia told the BBC that expected costs to grow in multiple areas, from groceries to gadgets

We will probably have to wait until the fall to see how much the next iPhone will cost.

But if the costs incurred by tariffs will lead to higher price markers, some may seek rivalry on phones or second-hand devices.

CCS Insight estimates that second -hand 5.5 million smartphones will be sold in the UK in 2025, representing 29.7% of the total market.

The iPhone remains one of the most expensive smartphones on the market -and brands like Google and Samsung offer phones with similar features at a lower price.

The other option may be the most profitable for people to skip upgrades to the newer iPhone models and look a little older, cheaper versions.

“The path of the slightest resistance would be to keep the smartphone they already have in a long time,” said G -n Wood.

Additional reporting by Paul Saardzhent, Tom Finn and Pratiksha Guilds.



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