Let's thank Trump: huge duties could cause Apple to raise iPhone price by 43 per cent

We have already reported that due to the huge duties announced by the Trump administration, Apple could be in a difficult position as the company has been lining up production in different countries in Europe and Asia for years and now this could lead to huge financial losses.

The stock market instantly reacted by plummeting Apple's share price by more than 9 per cent, which is the biggest collapse since 2020.

Here's What We Know

Most Apple devices are made in China, and Taiwan produces Apple's critical Silicon processors, which are used in all of the company's devices. With duties on goods from these countries raised to 34 per cent and 32 per cent respectively, Apple will have to significantly increase the cost of its gadgets.

Analysts have calculated that in the case of such a decision, iPhone prices may increase by 43%, top models may cost up to $2300, and the most affordable modern iPhone 16e will rise in price from $600 to $858.

At the same time, experts believe that Apple will not shift the entire burden of Trump duties to the buyer and will take on some of the costs, which will lead to a reduction in profits.

The price hike is expected to start in autumn with the release of the iPhone 17.

Apple is investing $500bn to build manufacturing capacity in the US and is already building a large plant in Texas. But analysts doubt that the corporation will be able to fully move production to the US. Wedbush Securities estimates that Apple will be able to localise only 10% of its production in the US, but this will take three years and $30 billion. And where Apple will get enough qualified employees in general remains a big question, especially given Trump's anti-immigration policy.

Source: Reuters