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Despite Trump tax, iPhones shouldn’t cost more

Apple

Posted: August 27, 2019
Updated: August 27, 2019

by Steve

In this unforgiving world, people quickly feared an increase in prices. Recently, the often criticized US President Donald Trump has dangled a succession of taxes imposed on China, which would raise the prices of any smartphone that leaves the Asian country. The tax has not yet been implemented: it should however be in place by December, if the trade war between the United States and China is not over by then. If it is not, the iPhone, assembled in China, should be subject to a higher tariff which, logically, will affect us poor consumers who must calculate the lesser of our expenses.

If our fears are well-founded, analyst JP Morgan, a big name always very aware of all Apple news, wants us to believe the opposite. Apple would indeed have succeeded in limiting the production costs of the 2019 iPhones, which would allow it to compensate for the 10% tax without having to increase the price of the next smartphones. Like what, large firms always find a solution when it comes to losing sales figures … A significant reduction in the cost of certain materials, which would have gone from 50 to 30 dollars.

So far, the trade war has not affected Apple’s business. But things could change from December with the arrival of this 10% tax on all smartphones imported from China. For Apple, the main thing is to maintain the prices of 2018, which were already very high. The apple brand could also avoid any geopolitical problem by manufacturing in the United States, as recommended by Donald Trump.