Thanks again Trump: huge duties could raise the cost of the iPhone 16 Pro by $300 and new models could cost more than $2,000
We have already reported about Apple's problems that have arisen in connection with the increase in duties announced by the Trump administration - they reach 54% and affect all major suppliers of components for gadgets of the American corporation.
Apple will certainly suffer because it will have to raise the cost of its own goods, which will make them less attractive to the buyer.
Here's What We Know
TechInsights analyst Wayne Lam estimated that the cost of production of the iPhone 16 Pro for 256 GB, taking into account components, assembly and testing, with the introduction of duties will grow from $580 to $ 850. Hence, if Apple wants to make a profit, it will have to raise the retail prices of the iPhone 16 Pro by at least $300 - above $1100.
The cost of iPhone 16 Pro components. Source: The Wall Street Journal
The price hike will affect everything: both those devices that are already successfully selling and those that are still in development. Analysts predict that new iPhone models could cost more than $2000.
Trump justifies the imposition of giant duties by wanting to bring large-scale manufacturing back to the US, but giants such as Apple will not be able to implement this initiative, as it will require a colossal amount of time, resources and skilled labour. And already at this stage, Trump's idea is proving unrealistic, as the cost of labour, for example, in China is around $30 per smartphone, while in the US this figure can be as high as $300.
Apple will not physically be able to raise the cost of its devices to a level that is economically feasible and profitable, and even if it did, few people will buy smartphones starting at $2000.
Source: The Wall Street Journal
