There is an important news for people thinking of buying iPhone. Apple’s CEO Tim Cook has given a big statement on whether the iPhone prices may rise between the trade war between the US and China.
Tim Cook said that the tariffs (import duty) imposed on China by the US so far has not affected the company’s earnings. In the March quarter, Apple handled his supply chain better and kept these increased costs under control. But they are not completely confident about what will happen in the coming months.
He clearly said that if there is no change in the current condition of the tariff, then the company may have to bear an additional cost of about $ 900 million (about Rs 7,500 crore).
Will iPhone prices rise?
Not at the moment, Apple has borne the increased cost till now and has not allowed it to affect the customers. Tim Cook said, “Our team has handled the supply chain very well, and we will continue to do so even further.”
That is, Apple is not increasing the prices of iPhone right now, but if the situation worsens, then the prices can increase.
Apple made backup plan
Apple is already reducing dependence on China. The company has shifted manufacturing of many of its products to India and Vietnam. In India, more than half of iPhones are being sold for America. At the same time, products like Macbook, iPad, AirPods and Apple Watch are being prepared in Vietnam. Tim Cook said, ‘We had already understood that it is a big risk to depend on the same country. So we have spread the supply chain in different countries.
Trump’s policy and risk of increasing tariff
US President Donald Trump had announced a ‘145% tariff’ on products coming from China. This could have a big impact on companies like Apple. However, a few days later, the Trump administration gave exemption to smartphones, computers and tech products at the moment, so that companies can get time to shift their production out of China.
But this discount is not forever. In the coming time, the US can increase the tariff again, which can increase the prices of iPhones and other gadgets. At present, iPhone prices are stable, but how long they will last, there is no confidence. Apple’s strategy can also change with changes in tariffs and international trade policy. If the cost increases more, it can also affect the customers’ pockets.