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Indian customers could end up paying more for iPhones, especially the newer models, due to this ripple effect of tariffs — even if the taxes aren’t directly aimed at India.
After becoming President in January, Donald Trump put a 20% tax (tariff) on goods from China. On Wednesday, he added another 34%, making the total tax 54%. This is the highest U.S. tariff ever on any country and could cause big price increases on Chinese products.
Apple makes most of its 200 million iPhones in China. Because of the 54% tariff, iPhones may become much more expensive. Apple could either cover the extra cost themselves, which might hurt their profits, or raise iPhone prices for buyers. If they raise prices, experts say the cost of an iPhone could go up by as much as 43%.
In that case, an iPhone could cost up to $2,300, according to analyst Daniel Ives from Wedbush Securities. Even the cheapest new iPhone – the iPhone 16e – might jump from $600 to $858. That could be a problem because many customers are already spending less due to inflation.
What does this mean for Indian consumers?
After becoming President in January, Donald Trump put a 20% tax (tariff) on goods from China. On Wednesday, he added another 34%, making the total tax 54%. This is the highest U.S. tariff ever on any country and could cause big price increases on Chinese products.
Apple makes most of its 200 million iPhones in China. Because of the 54% tariff, iPhones may become much more expensive. Apple could either cover the extra cost themselves, which might hurt their profits, or raise iPhone prices for buyers. If they raise prices, experts say the cost of an iPhone could go up by as much as 43%.
In that case, an iPhone could cost up to $2,300, according to analyst Daniel Ives from Wedbush Securities. Even the cheapest new iPhone – the iPhone 16e – might jump from $600 to $858. That could be a problem because many customers are already spending less due to inflation.
What does this mean for Indian consumers?
● Higher prices: Even though the tariff is not directly on India, Apple might raise prices globally to cover losses in the U.S. market.
● More expensive new launches: The upcoming iPhone models, like the iPhone 17, could be launched at a higher price in India than expected.
● Slow manufacturing shift: Apple has started manufacturing some iPhones in India (like the iPhone SE and 14), but the majority are still made in China. Until more production shifts to India, global pricing pressures will continue to affect us.
Angelo Zino, an analyst at CFRA Research, said Apple would only be able to pass 5% to 10% of the extra cost to customers. He thinks Apple will wait until the iPhone 17 comes out this fall before making any big price changes.
Apple has not replied to any of the media queries regarding the same.
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