American smartphone market is strange. Most of us buy our phones through a mixture of division plans, trade offers, and transportation company deals, so the answer to the question “How much does this phone cost?” It can sometimes require Galaxy-Brain mathematics. President Trump’s tariff is to increase by 34 percent on Chinese goods on April 9, making things more complicated. Will you spend Apple, for example, the additional cost of iPhone directly to buyers? The market seems to think that. Apple shares may have decreased by approximately 10 percent, which is the worst decrease in about five years.
But Geerrit Schneemann, chief analyst at Counterpoint Research, does not necessarily think we will see an immediate increase in prices.
“I do not expect them … on a short -term basis just raising prices unnecessarily,” said Shiniman freedom.
It indicates that Apple’s margins (historically about 38 percent) gives them more maneuvering space to accommodate the costs of definitions, at least in the short term. “But if you hold this, we will likely see a rise in prices,” he said, in reference to the expected iPhone 17.
If the purpose of these definitions is to make Apple start making iPhone devices in the United States, this will not happen any time soon as well. The company will face some tremendous challenges to do so.
“I don’t think we see a real way for the significant American smart phone industry production center,” says Shiniman. Apple is making some manufacturing in the United States It is largely limited to production on a small scale. IPhone and its network of specialized components suppliers are a different monster. Even if the Apple creates supply chains, labor force, and manufacturing facilities for the iPhone in the United States, the costs will be prohibited, probably more than the impact of definitions. These definitions are implemented by an executive order instead of Congress, so a new new president can change in four years.
Apple will continue to make iPhone devices abroad and find ways to deal with additional taxes to import them to the United States. “There were already reports on [Apple] “Trying to get the supply chain to absorb some of this additional cost, which is a good thing anyway,” says Sheniman.
However, there is still a lot of uncertainty about these definitions, including whether to decline again. As I said, it is complicated.
We have contacted Apple for a comment and we will update this story if the company responds.
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