James Paul 
The increase in customs tariffs decided by Donald Trump will probably not be painless for Apple. Price increase, bypass, or strategy aimed at obtaining government favors to avoid the worst. Here are the options that the tech giant could use.
Apple produces most of its iPhone in China and the Middle Empire is one of its best customers. The 20 % increase in customs duties on products from this country is therefore likely to be felt on the side of the Cupertino firm.
Faced with this wall, the apple brand has already announced that it provides several billion dollars in investment in the United States and to hire 20,000 people in the next four years. The idea is probably to try to obtain exemptions from customs tariffs for its activities, according to several experts consulted by Business Insider.
An inevitable price increase?
But, unlike the first term of Donald Trump, this tactic may not be sufficient. Consequently, the technological company could be forced to increase its prices. Of course, Apple is not going to rush to do it. The tech giant knows that it may displease consumers and he has also maintained that of the iPad Air released this week, while certain prices of MacBook Air are also decreasing.
Regarding the iPhone, the situation is however any other. Indeed, as William Kerwin, analyst at Morningstar, notes, the prices of these smartphones in the United States have not increased since 2020 outside of his pro Max model, from $ 1099 to $ 1199 during the release of the iPhone 15 equipped with Apple Intelligence. The Cupertino firm could therefore be forced to increase the price on this product, if the commercial hostilities decided by Donald Trump are maintained in time.
To get out of it in the longer term, the tech giant should also continue to move its China supply chain to other emerging countries. The apple brand has also turned more and more towards states such as Vietnam and India to ensure the production of its products, and the movement should only increase according to specialists.
What to remember:
- The increases in customs tariffs decided by Donald Trump seem to worry Apple
- The apple brand will try to obtain exemptions
- If it does not succeed, an increase in iPhone prices could be inevitable
- The company will continue to diversify its China supply chain to other countries
By: opera
