Trump tariffs impact: Will you have to pay Rs. 3 lakh for an iPhone in India as Apple might shift production to the US?
In an effort to entice businesses to relocate their manufacturing back to the United States, the US government has imposed new taxes on goods from other countries. According to President Donald Trump, this action will support regional businesses and generate millions of new jobs.
Apple iPhone production to move to the US?: According to recent reports, the price of Apple's well-known iPhone may rise significantly, maybe hitting ?3 lakh for Indian customers. The U.S. government's new taxes on Chinese goods are to blame for this increase.
These increased tariffs have the potential to significantly increase production costs because a significant amount of iPhone components are made in China.
Apple must decide whether to pass the costs on to customers, modify its supply chain, or absorb the higher prices. We examine the reasons for this possible price increase in this piece, as well as the possible effects on the Indian smartphone market.?
Apple iPhone expected to raise high price hike in India
iPhone may get price hike in India if its production will be done in the US | Credit: Canva
Since labor and production costs are far lower in China, the majority of iPhones are currently produced there. Apple would have to spend billions to create supply chains and high-tech facilities in the US if it were to move manufacturing there.
This infrastructure has taken decades to develop in Asia. The analysis estimates that it would take over three years and cost at least $30 billion to move even 10% of Apple's supply chain to the US.
Apple is already affected by tariffs
Apple's stock has fallen by about 25% since the new tariffs were announced. Higher tariffs on imported parts could result in a 43 percent price increase, even if the company is not yet moving all of its production to the US.
Implications for customers
The cost of making and importing iPhones is rising, even if manufacturing continues to take place abroad. Customers may likely have to pay a lot more for models in the future. A standard iPhone might become a luxury gadget instead of a mass-market item if the whole production shift takes place.
If Apple were to shift production to the US, it would need to invest billions in building high-tech factories and supply chains | Credit: Canva
Apple is looking for more options
Apple has already begun moving some of its manufacture to Brazil and India, where labor costs are lower and trade restrictions are less stringent, in an effort to lessen its dependency on China. However, according to experts, moving Apple's supply chain entirely is neither simple nor inexpensive, and the effects of Trump's US trade policy may still be seen in prices around the world.
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