The trade war relaunched by Trump threatens Apple’s global strategy and could explode the prices of its flagship products, despite its diversification efforts.
TL; Dr
- Apple is affected by Trump’s customs tariffs.
- Apple’s overall production could see its costs increase.
- Apple prices could increase.
Trump’s customs tariffs touch Apple
Like many companies, Apple strives to assess the real impact of customs duties imposed by President Trump on his world production chain. The implementation of these “reciprocal rates”, which came into force on April 2, concerns a certain number of countries on which Apple has for the manufacture or assembly of its products.
The implications of customs tariffs
China, where produced Most of the 200 million iPhones sold each year, was struck by a rate of 54%. It could have great repercussions On the price of the iPhone 17 Pro Max and other future models. However, China is not the only country concerned, and the iPhone is not the only product that could undergo the consequences of this “liberation day” by President Trump.
Diversification of the Apple supply chain
Tim Cook has made important efforts to diversify the company’s supply chain in recent years, turning away from China for the benefit of countries like India and Vietnam. Unfortunately for Apple, these two regions, among many others, will also be affected by new strict taxes. As Mark Gurman writes in his latest Power on, ” Apple will always undergo an impact on the iPhone made in India, the AirPods manufactured in Vietnam and the Macs made elsewhere in Asia. »
Possible consequences on prices
According to a Reuters report published on Friday, analysts from Rosenblatt Securities said that Apple could increase the prices of iPhone and Apple Watch by 43%, 42% iPad and AirPods by 39% to compensate for the additional cost. To put this in perspective, this would mean that the basic model of the iPhone 16 would see its price going from $ 799 to $ 1,142. Apple products could therefore become even more expensive. For example, Apple has increased its prices in the United Kingdom following the economic upheaval caused by Brexit, it is therefore quite possible that we are witnessing the same thing in the United States.
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