According to reports, if Apple bears these increased costs itself and does not load the customers, then his gross margin may suffer about 9% injury. On the other hand, if the company transferred to the customers, then the initial price of the upcoming iPhone models can reach around Rs 99,000. This is not us, but the reports of Reuters, citing experts of Rosenbalat Securities. Analysts say that iPhone prices in the US may be directly affected by these tariffs and its effect can also be seen in a market like India.
The report states that Apple sells more than 220 million iPhone every year and the company’s largest markets include the United States, China and Europe. The cheapest iPhone 16 model was launched in the US at a price of $ 799 (about Rs 68,200), but the estimates were calculated, it could be up to $ 1,142 (about Rs 97,500). At the same time, more premium iPhone 16 Professional Max, which is currently sold for $ 1599 (about Rs 1,36,500), if an increase of 43% is transported to consumers, it can cost around $ 2300 (about Rs 1,96,400).
However, there are some factors that may change this estimate. The biggest point is that Apple’s CEO is considered good relation between Tim Cook and Trump. In such a situation, it is possible that the company can get some kind of tariff exemption. Second, Apple has been trying to shift manufacturing out of China for the last few years, especially towards India and Vietnam. And third, further clarification or change on this tariff is also expected by the administration.
At present, Apple is currently produced by about 10% of the production in India and 26% tariffs will be imposed on the products coming from there. Its effect will be comparatively low (about 0.5% margin effect), but if the company gradually removes its focus from China and increases India, then it can benefit later. At present, the date of implementation of tariffs has been fixed as 9 April and by then Apple will have to either get discounts or prices will have to increase.
Apple’s stock declined by 5.6% after the announcement of tariffs on Wednesday. The company’s stocks fell from $ 223.89 to $ 211.32. This year, Apple shares have dropped to about 11% so far. The impact of the tariff can be seen not only on Apple, but on the entire global trade structure, as the US has imposed heavy duty on many countries like China, India, European Union, Japan, Vietnam.
