US-China trade war could make iPhones 3% more costly
15-May-2019
The ongoing trade-war between the US and China has caused Apple's iPhone production costs to rise as much as 3 per cent because of the new retaliatory tariffs imposed by Beijing.
"Tariffs on the device's Chinese-made batteries and other components would increase its manufacturing cost by 2 per cent to 3 per cent," Fortune quoted a Wedbush analyst Dan Ives as telling investors.
To recoup the same profit on each iPhone sold as before, Apple would need to increase iPhone prices by a similar amount.
"The price of an iPhone XS, for example, would rise from $999 to as much as $1,029," the report said.
According to Ives, Apple's costs could soar higher if the Trump administration follows through with a plan to add an additional $325 billion in tariffs to Chinese goods. If that happens, iPhones would cost an extra $120 each to produce.
Ives' estimates are just the latest by analysts about the impact of the U.S.-China trade war, the report added.
On May 10, that fight entered a new phase when President Donald Trump's administration announced $200 billion in new tariffs on Chinese imports.
In response, China on Monday retaliated by announcing $60 billion in tariffs on US-produced batteries, coffee, and other products. Those tariffs would take effect on June 1. IANS
BJP Loses Veteran Malikayya Guttedar to Congress Ahead of Lok Sabha Elections
ED Attaches Rs 97.79 Crore Worth of Properties Belonging to Raj Kundra Under PMLA
ISRO's Former Director Cites Probability Theory in Support of Possible Alien Existence
Gaming Startup LightFury Raises $8.5 Million to Develop AAA Titles in India and UK
Wow! Momo Raises Rs 70 Crore, Following Rs 350 Crore Investment to Extend Growth