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Import duties or Assembly in the United States: what iPhone expensive most

28.11.2018 - Apple, iPhone
Import duties or Assembly in the United States: what iPhone expensive most

Customs duties on imports from China of Apple equipment in the amount of 10-25%, about the possible introduction of which warned U.S. President Donald Trump will be a more favorable outcome for the company than the transfer of production to the homeland. This position is held by Tim Bajarin, President of the consulting Agency Creatitve Solutions. According to him, this will lead Apple to lower costs than the start of production of branded products in the United States.

If Apple will concede a Trump and will transfer production of the iPhone on the territory of the United States, it will increase their retail price by 20-35 from current level, says Bajarin. Thus, assembled in USA iPhone XS in the basic configuration will cost 1200 at the most favorable outcome to 1350 dollars — at the least favorable. This jump in prices will further depress sales of Apple smartphones, having the most negative impact on the company’s revenues.

How to change the price on the iPhone

But in this case, to avoid import duties by 100% will still fail, warned the analyst. The fact that the iPhone (not to mention other products) is assembled with components from dozens of suppliers, many of which are based in China, and hence subject to import charges. This will not only affect the cost of the devices, but will also complicate the delivery of parts that will have to carry across the ocean.

But the company fears the other. According to Tim cook, CEO of the company, in the United States lack qualified staff, able to deal with the management of production lines. “If the United States, we will convene a meeting of the engineers [we need the qualification], I’m not sure that will be enough to fill the room — said cook. — At the same time in China, we fill them several football fields.”

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