“Following the president’s instructions, these companies are rushing to transfer their production to the US as soon as possible,” he added.
The technology industry depends on a global suppliers network for the components and assembly of its products.
This, added to the need to find qualified workers who fit the rapid rhythm and low production cost in Asia, implies that relocating supply chains is not an easy task.
Apple committed an investment of US $ 500,000 million in the US in February, which, according to Trump’s government, will result in a higher local production.
However, the analyst Dan Iives, from Wedbush Securities, said that moving parts of his supply chain from cheaper manufacturing centers in Asia to the US would require a lot of time and money.
“The reality is that, according to our estimates, three years and US $ 30,000 million would be needed to transfer even 10% of its Asia supply chain to the US, with an important interruption in the process,” he wrote on X on April 3.
Some estimates suggest that iPhone prices in the US could even triple if the costs moved to consumers.
Before Trump increased the tariff to China to 145%, when the rise had reached 125%, the UBS investment bank estimated that the price of an iPhone 16 Pro Max manufactured in that Asian country with 256 GB of storage would shoot at US $ 1,199 to US $ 1,999 plus taxes (which depend on the state and the county, but vary between 0% and almost 13%).
Analysts estimated that with 125% tariffs on Chinese products, the most expensive iPhone could increase its consumer price by US $ 800 in the US
These experts calculated a less significant increase for the iPhone 16 Pro of 128 GB of storage, manufactured in India, 5%, from US $ 999 to US $ 1,046 plus taxes.
Meanwhile, some analysts such as Dan IVES have suggested that the price of an iPhone “made in the US” It could shoot at US $ 3,500.
Apple’s drastic decision
To counteract the negative effects of Trump’s foreign trade policy, Apple announced Thursday that it will move the production of most iPhones and other devices that it sells in the US and will no longer be manufactured in China.
“For the quarter that ends in June, we foresee that most of the iPhones sold in the US come from India, and that Vietnam is the country of origin of almost all iPad, Mac, Apple Watch and Airpods sold in the US,” said the company’s executive director Tim Cook.
This occurs while the technological giant estimates that taxes on US imports could add around 900 million dollars to its costs in the current quarter, despite Trump’s decision to exempt the key electronic products of the new tariffs.
However, transferring the production lines to India will require time and an investment of billions of dollars.
«Tariffs will continue to affect supply chains [de Apple] And a cost to transfer them and build new factories, ”said Shanti Kelemen, M&G Wealth investments director, to the BBC.
The iPhone that are imported from the US will become manufactured in India. Getty images
Apple’s drastic decision was “impressive,” according to Patrick Moorhead, executive director of Moor Insights & Strategy.
«This is a remarkable change with respect to what [Cook] He said a few years ago, when he said that only China could manufacture iPhones, ”said Moorhead.
What will happen in Latin America?
In Latin America, economic reality causes most consumers to opt for cheaper phones than Apple’s, a brand that focuses on the market prémona segment.
The company has 8% of the market and is widely exceeded by competitors such as Samsung, Xiaomi and Motorola, according to the Market consultant Canals.
In addition, there is a wide variety of prices in the region, depending on each country.
Buying an iPhone 16 Pro Max costs more than US $ 2,900 in Argentina, while in Costa Rica it can be purchased for just over US $ 1,300.
So, the iPhones that arrive in Latin America will be of Indian origin from now? The Vietnam iPads? Will tariffs affect the prices paid in the region?
Los smartphones Apple arriving in Latin America will continue to be manufactured in China, according to the company.
“China will continue to be the country of origin of the vast majority of total sales of products outside the US,” Tim Cook said Thursday.
That will not have an impact on the price, because Apple devices sold in Latin America do not pass before by the US, and therefore the extraction of Trump tariffs are not imposed.
We will probably have to wait until September to see how much the next model will cost.
The iPhone is still one of the smartphones More expensive on the market, and brands like Google and Samsung offer in the US phones with similar features at a lower price.
In Latin America, Xiaomi, Itel, Tecno, Infinix or Motorola also have devices at lower prices.
The other option, and perhaps the most profitable, could be that users avoid updating to newer iPhone models and opt for slightly older and more economical versions.
