Trump Tariffs: iPhone will become three times more expensive, price may reach three lakhs
Trump Tariffs: To manufacture in America, Apple will have to build new factories at the cost of billions of dollars and develop a complex supply chain that has been developed in Asia over several decades. The report also states that if Apple wants to bring even 10% of its supply chain to America, it will take at least three years and $30 billion (about ₹ 2.5 lakh crores).
The US administration has pledged to charge tariffs for products imported from other countries. President Donald Trump feels this decision would make American corporations return home, generating millions of jobs and increasing the domestic industry of the country, while others feel that doing so can make mobile phones extremely costly for customers.
According to a CNN report, if Apple manufactures iPhones entirely in the US, then its price could go up to around $3,500 (around ₹3 lakh). Currently, the price of an iPhone is around $1,000. The reason for this huge increase will be the huge cost of building and maintaining high-tech factories in the US.
Currently, iPhones are produced mostly in China, which has low labor costs. Meanwhile, for American production, Apple will have to construct new plants at the expense of billions of dollars and create a complicated supply chain that has been built in Asia for decades. As for now, according to the report, in order to relocate even only 10% of its supply chain to the US, it would at least take three years and $30 billion (approx. ₹2.5 lakh crores).
The components used in the iPhone originate from various countries. Chips, for instance, are produced mostly in Taiwan, screens in South Korea, and other components in China. All of these components are subsequently put together in Chinese factories and exported across the globe.
This international supply chain helps Apple keep costs low and make more profits. This is why Apple has been able to become one of the most successful tech companies in the world.
