IPhone prices rise due to China-US conflict

science and technology

On May 10, the US Trade Representative's office announced that it was raising tariffs from 10% to 25%. About 200 billion dollars of goods imported from China.

The company is used Apple A supply chain for all its products, from iPhone to iPad and Mac devices, and a 25% tariff is imposed on the components instead of the devices themselves, so it is difficult to calculate the impact on retail prices.

However, analysts expect that new tariffs could add about $ 160 to the cost of a device iPhone XS Chinese-made.

Iphone

US President Donald Trump insists China will pay for higher US tariffs, but the situation will not go this way because it is companies importing goods from China that will pay the fees.

So Apple has to choose whether to absorb costs, which will affect its profits, or shift costs to consumers by raising prices.

According to the Mirror website, the company is trying to reduce its dependence on China, and has thought of moving some production to India or Brazil, but although this may create a backup plan for suppliers, assembly operations will be more difficult.

And found a location musicMagpie That if consumers want to buy a device iPhone Directly every time a new device is released, it will be very expensive.

The site also found that the price of iPhone rose by 162% in the past ten years, while average hourly wage rose by only 2.95% in Britain, from 11.88 pounds in 2008 to 14.31 pounds in 2018.

So consumers want to buy a device iPhone XS , The average person will need to work for 70 hours to be able to afford it.