Apple’s prices are set to skyrocket to offset President Donald Trump’s tariffs, making the pricey iPhone even more expensive.
Wedbush Securities analyst Dan Ives has warned that the popular smartphones could reach $3,500 each, noting that building them in China is the only way to keep them affordable.
The increase would put the iPhone on par with Apple’s Vision Pro headset, which flopped because of its hefty price tag.
Trump unveiled an additional 34 percent tariff on all Chinese goods imported into the US on Wednesday. Almost all iPhones are assembled in China.
‘For US consumers, the reality of a $1,000 iPhone being one of the best-made consumer products on the planet would disappear,’ said Ives.
‘It speaks to our point that if consumers want a $3,500 iPhone, we should make them in New Jersey or Texas or another state….the concept of making iPhones in the US is a non-starter in our view at $1,000.’
Apple had announced a $500 billion investment in the US back in February, in an effort to keep its prices down.
However, Ives said that ‘is it would take three years and $30 billion dollars in our estimation to move even 10 percent of its supply chain from Asia to the US with major disruption in the process.’
This is a developing story… More updates to come
Apple’s prices are set to skyrocket to offset President Donald Trump’s tariffs, making the pricey iPhone even more expensive
