Apple’s higher margins provide some buffer, but US consumers may still face a significant price increase on new iPhones as tariffs rise, according to Counterpoint Research.
The Trump administration has currently imposed tariffs of more than 100% on Chinese goods and 46% on Vietnamese goods. As many as 57 countries will be affected by this announcement, including the key manufacturing hubs for smartphone brands dominating the US market, like Apple, Samsung, Motorola, Google and China-based suppliers for low-end US prepaid markets, according to Counterpoint.
China, which accounts for about 80% of iPhone production for the US, now faces a steep 104% tariff following the April 2 announcement, impacting key brands like Apple, Motorola and Google. India accounts for the remaining 20% of supply.
Vietnam with a 46% US tariff and India with 26% are the most impacted among the countries exporting to the US, affecting key brands like Samsung and Google. However, example, India with a US tariff lower than those for China and Vietnam can offer a good production alternative, according to Counterpoint.
“Apple has maintained higher margins than other brands, creating flexibility to absorb some of the tariff costs,” says the research group. “The company is likely to be the least affected in the short term as it can avoid passing on tariffs to end users if it decides to do so. However, increased inflation and souring consumer sentiment can still lead to weakening demand.”
What’s more some companies are already stockpiling smartphones and other products. According to Nikkei Asia, Apple has requested suppliers to ship as many premium devices as possible to the US by air freight, especially those priced above $3,000.
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