The iPhone XS price would go from $1,000 to $1,142, the firm calculates, if the White House implements a 25% tariff on the rest of China imports.
Bank of America estimates a 20% price increase to the iPhone if Apple decides to move iPhone manufacturing to the U.S.Apple CEO Tim Cook attends the annual session of China Development Forum 2018 at the Diaoyutai State Guesthouse in Beijing, China March 26, 2018.If President Donald Trump decides to slap tariffs on the remaining billions of dollars worth of Chinese goods,may need to raise iPhone prices significantly to offset the higher costs of parts, according to Wall Street analysts.
"We estimate a price increase of around 14% is required to absorb the impact of a 25% tariff, keeping margin dollars for all players in the supply chain constant," J.P. Morgan said in a note to clients Tuesday. The bank broke down the costs of making and selling the iPhone XS with no tariffs, which is about $1,000, versus what it would cost if a 25% tariff hits China-made parts. That would take the iPhone's retail price up to $1,142, the firm calculates.
A true environmentalist would demand (and gladly pay the higher price) the iPhone and all of its components be made under the high environmental standards of the United States.
Swing_Trader24 There is a reason why I don't add Apple to my stock portfolio. I don't believe they can maintain profitability for much longer. Steve Jobs was their golden child when he was around. That man brought us the iMac, iPhone, iPad, iPod, MacMini, etc. Earbuds aren't impressive....
Good. This will make the iphone an even bigger status symbol. And since I already have an iphone, I can feel even more superior😉
Tim Cook better find a way to reduce cost and control price. Apple has been relying on cheap labor too easy too long for their obscene profits.
Tim Cook, the most well known coat tail CEO in the history of the world. What would Steve Jobs do?
Omg there already 1449.00 🤬
Or manufacture in the US. ;)
Might as well bring back those jobs to the U.S
Apple cash on hand: $245 billion up $7 billion from last quarter. There might be some wiggle room to squeeze that profit margin
Or take less profit from each sale. Seeing as how they are way overpriced to begin with the choice is really easy.
We'll see about that.
Garbage analysis. Total cost of making and selling is $1000 right now? So Apple is making zero profit? 🙄 Learn the difference between cost and sales price.
Bullshit, they can make the IPhone 800$ cheaper and still make a profit.
In all fairness, they shouldn't be exploiting Chinese labor to make them anyways.
And their sales will drop... There’s a better way — treat your customers like sh..t. It certainly can work, up to a point at least... AppStore Apple AppleSupport
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