The new iPhone will be even more expensive? Prepare wallets
Apple plans to raise the prices of iPhones by the way The autumn premiere of the latest series of devices. Although the obvious reason for such a decision may seem to import from China imposed by the administration of Donald Trump (Apple still produces most of its devices in Chinese factories), but – According to “The Wall Street Journal” – The Cupertino giant is looking for other ways to justify planned increases. Therefore, Apple intends to focus on such aspects as the redesigned iPhone 17 construction, higher production costs or rising costs of materials.
Suspension of the trade war without affecting the Apple decision?
Therefore, there are many indications that the prices of iPhones They will increase even when the trade war is extinguished on the US -China line. We would like to remind you that at the beginning of this week both countries concluded an agreement, under which the United States will reduce customs to Chinese goods to 30 percent from 145 percent for a period of 90 days, and China will reduce customs to imports from the US to 10 percent. with 125 percent It is worth noting that the iPhones will premiere in September, So after the 90-day “weapon suspension” expires. It is difficult to forecast today how commercial relations between Washington and Beijing will look like then.
Apple transfers iPhone production
At the beginning of this month, Apple announced that the duties in force only in the current quarter will cause Increase in the company's costs by about $ 900 million. To minimize the effects of tariffs, Apple transfers part of its production to India. But the current production capabilities in India are insufficient for mass production of advanced iPhone models, and Analysts predict that the elimination of this gap can take years. Last year, India was responsible for 13-14 percent of global supplies of iPhones, and this year this participation may double, but it still does not satisfy the demand in the USA.
India is new China?
The transfer of production to India is an element of a broader supply diversification strategy. Apple has been cooperating with Foxconn for years, which has invested in factory in the Indian state of Tamil Nadu. This is where new generations of iPhones are to be created. Importantly, India tempts Apple not only with lower work, but also Support for the government of Narendra Modi, who is losing foreign companies with attractive investment programs. India also provides a giant market. This country has already overtaken China as the largest smartphone market in terms of the number of users.
How much can a new iPhone cost?
The uncertainty related to the trade war and the Apple decisions regarding the transfer of part of the production of devices to India make it difficult to estimate the scale of increases today that will affect the latest series of iPhones. At the beginning of April, experts from Rosenblatt Securities estimated that in the case of the US the prices of individual models could increase from 30 to even 40 percent. For example, the iPhone 16, which currently costs $ 799 could get up to $ 1,142. Interestingly, while in most markets the price of the iPhone has grown in recent years or remained unchanged, in Poland Apple devices cheaper – And this is significantly, which was influenced by, among others A favorable dollar exchange rate.