Learn extra at:
Trump’s new tariffs might influence your life greater than you assume, particularly should you’re an Apple fan who loves upgrading your iPhone early yearly. Whereas the present iPhone 16 Professional Max with 1 TB of storage already prices a staggering $1,599 earlier than taxes, its successor might carry a really insane price ticket.
Reuters says these tariffs utilized globally might have an effect on the whole lot from “hashish to trainers and Apple’s iPhone.” Primarily based on projections from Rosenblatt Securities, the iPhone 17 Professional Max with 1TB of storage (if Apple retains the identical quantity of most storage for 2025) might value practically $2,300 because of the new tariffs utilized to China, Vietnam, India, and Taiwan.
As reported by BGR, analyst Ming-Chi Kuo believes Apple must rapidly give attention to rising manufacturing in India and Vietnam to maintain up with American demand for the brand new iPhone 17, together with the upcoming iPhone 17 Professional Max.
Kuo says that if issues keep as they’re, Apple’s earnings will drop by round 8.5-9%, which is quite a bit for the corporate and its shareholders. At this second, solely 15% of worldwide iPhone manufacturing is anticipated to shift to India this 12 months, which is up from 10-12% in 2024. The analyst writes: “Given China’s unlikely concessions to the Trump administration for tariff exemptions, Apple might cut back the gross margin hit to five.5-6% with out elevating costs if India and Vietnam safe tariff waivers by way of new US agreements.”
If that occurs, Apple may have the ability to enhance iPhone manufacturing capability in India to over 30% of the worldwide provide, which might negatively influence gross margins by solely round 1-3%.
The analyst says the timeline of tariff exemptions remains to be unclear. Nevertheless, Apple would pace up its shift of meeting orders away from China till non-Chinese language manufacturing can fulfill most US demand.
The analyst believes Apple has just a few choices in opposition to Trump tariffs, which you’ll study extra about under.
