Are you planning to buy an iPhone this year? If so, it is important news for buyers. Apple CEO Tim Cook has made a big statement on whether iPhone prices may rise between the ongoing trade war between the US and China.
Tim Cook said that the import duty imposed by the US on China so far has not affected the company’s revenue. In the March quarter, Apple controlled these rising costs by better managing its supply chain. But he is not completely confident about what will happen in the coming months. He clearly said that if there is no change in the current tariff situation, then the company may have to bear an additional cost of $ 900 million (about Rs 7,500 crore).
Will iPhone prices rise?
Apple So far, the burden of these values has been borne by itself and has not put any burden on its customers. Tim Cook said, “Our team has handled the supply chain very well and we will continue to do so.” This means that Apple is not increasing the iPhone prices at the moment, but he has also warned that prices may increase when the situation worsens.
Apple’s backup plan
Can Apple price rise?
Apple is already reducing its dependence on China. The company has shifted the production of many of its products to India and Vietnam. More than half of the iPhones sold in the US are now made in India. Products such as MacBook, iPad, Airports and Apple Watch are being manufactured in Vietnam. Tim Cook said, ‘We already understood that it is a big risk to depend on any one country. That is why we have spread the supply chain in various countries.
Trump’s policy and increasing tariff threat
US President Donald Trump announced a ‘145%’ tariff on products coming from China. This could have a major impact on companies like Apple. However, a few days later the Trump administration temporarily exempted smartphones, computer and technology products, giving companies time to take their production out of China.
But this discount is not permanent. America again in the coming days Tariff increased May, which can increase the prices of iPhone and other gadgets. Currently, iPhone prices are stable, but it is not certain how long this situation will remain. Apple’s strategy can also change with changes in tariffs and international trade policy. The current situation is that if the cost increases much, it can also affect the pockets of consumers.
