United States’ president, Donald Trump, has threatened to impose tariffs on Chinese products. Experts now say that iPhone prices might increase to make up for the gap if the tariffs become a reality.
iPhones are already known as luxury phones, but there are rising concerns that it is about to get more luxurious. When Apple released its new line of devices in 2018, the cheapest one was the iPhone XR which cost $750. Experts believe this phone might receive an extra $100 increase. The most expensive one, the iPhone XS Max 512GB, could get a $200 increase to its already high $1,650.
However, there is a chance that Apple had envisaged this move and had already raised the price of the devices from the begging to capture this sort of development.
On Monday, 13th May 2019, Trump tweeted that if he managed to impose the tariffs, consumers in the United States should buy products from other countries instead. This, however, is easier said than done because the chances of Apple moving production from China is very slim.
There is no reason for the U.S. Consumer to pay the Tariffs, which take effect on China today. This has been proven recently when only 4 points were paid by the U.S., 21 points by China because China subsidizes product to such a large degree. Also, the Tariffs can be…..
— Donald J. Trump (@realDonaldTrump) May 13, 2019
…completely avoided if you buy from a non-Tariffed Country, or you buy the product inside the USA (the best idea). That’s Zero Tariffs. Many Tariffed companies will be leaving China for Vietnam and other such countries in Asia. That’s why China wants to make a deal so badly!…
— Donald J. Trump (@realDonaldTrump) May 13, 2019
Apple iPhone, America’s biggest phone brand, is a major concern when it comes to the discussion of imposing tariffs on Chinese goods. In 2018, Trump reportedly told Apple CEO Tim Cook that the trade wars between the two countries will not affect the iPhone. But Apple revealed its fears that the tariffs could, in fact, affect the prices of the Airpods and Apple Watches.
China buys MUCH less from us than we buy from them, by almost 500 Billion Dollars, so we are in a fantastic position. Make your product at home in the USA and there is no Tariff. You can also buy from a non-Tariffed country instead of China. Many companies are leaving China…..
— Donald J. Trump (@realDonaldTrump) May 14, 2019
Trump has also revealed his desire that he wants Apple to start doing its production in the United States. Despite this, the Trade Department has exempted Apple products from the tariffs.
A price increase will be bad for Apple at this point. This is largely because the competition is getting stiffer and iPhone sales are already dwindling.