The announcement of new tariffs by U.S. President Donald Trump last week is causing serious concern at Apple’s headquarters in Cupertino, California. The tech giant, which is the largest producer of consumer electronics in the world, is facing major challenges due to its reliance on Asia for the production of iPhones, MacBooks, AirPods, and iPads, writes Rks News.
Apple’s products are designed in California but are mostly assembled in China — a country that has been hit hardest by the trade war initiated by Trump.
According to estimates from Evercore ISI, “80% of iPhone production capacity is in China, and 90% of iPhones are assembled there.” This puts Apple in a difficult position, as the new tariffs could reach up to 54% on products imported from China.
Experts warn that the cost to consumers could rise significantly.
“An analysis suggests that the price of a new iPhone in the U.S. could soar to $2,300 due to the new tariffs,” CNBC reported.
Additionally, the cost of manufacturing the iPhone 16 has increased.
“The manufacturing cost of the iPhone 16 itself has gone up, with the 256GB version rising from $550 to at least $600, according to expert analyses.”
The tariffs imposed by Trump’s administration could directly impact the final price that American customers will pay.
“Trump’s tariffs could increase iPhone prices by 44% – from $1,599 to $2,300 for the Pro Max,” CNBC also reports on the production cost impact.
“The iPhone 16 might initially cost $350, but prices will likely ‘skyrocket.'”
According to technical data on the device’s composition: a screen made in South Korea costs exactly $37.97, a battery from China costs $4.10, a 5G modem from Korea costs $26.62, memory costs $21.80, storage produced in Japan costs $20.59, and a camera from Japan costs $126.95. The iPhone case from Taiwan costs $20.79, with all other components totaling $200.06.
With the escalation of the trade war and China’s exclusion from the 90-day tariff break, Apple may face a challenge that not only raises prices but also tests its global manufacturing strategy.
