Donald Trump’s tariff policy has created a lot of global disruption, especially between China and America. One of the areas most affected is the price of iPhones.
Tech experts are predicting that in the future, iPhones might cost up to three times more than they do now. Let’s understand why this is happening.
Why Are iPhones Becoming So Expensive?
When Donald Trump introduced his reciprocal tariff policy, he claimed it would bring jobs and factories back to America.
However, experts believe this could result in significantly higher smartphone prices.
According to Dan Ives, the head of Global Technology Research at Wedbush Securities, if Apple starts producing iPhones in America, the price could skyrocket to around $3,500 (around Rs 3.5 lakh), which is three times more than the current price.
The main reason behind this price increase is the higher production costs in the United States.
Ives explained that it would cost Apple about $30 billion to recreate the existing supply chain that is currently in Asia.
This process would also take about three years to shift just 10 percent of production to the U.S.
The Current Supply Chain and its Challenges
At present, most of the iPhone components are made in Taiwan, South Korea, and China, with about 90 percent of the assembly done in China.
Due to the ongoing tariffs and trade tensions between the U.S. and these countries, the cost of iPhones is expected to rise significantly.
Additionally, Apple’s stock has already dropped by 25 percent because of these trade policies.
