In a move likely to escalate the trade war between the United States, China, and the European Union, President Donald Trump has decided to impose tariffs on several countries around the world, including some in the Arab region. These new tariffs, which will take effect next week, will undoubtedly impact product prices for many companies, especially those in the Middle East. Camel Apple manufactures its devices outside the United States. In the following lines, we will review how Trump's tariffs will affect Apple product prices.
Apple products
Apple has taken steps to diversify its supply chain outside of الصين To include countries like India and Vietnam, the tariffs announced by the White House are expected to affect those countries as well. A 10% base tariff has been imposed on all imports into the United States, in addition to reciprocal tariffs targeting most of the countries Apple relies on to manufacture its various products. The following are the countries Apple relies on to manufacture its various products and their respective tariffs:
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Most of Apple's iPhones are still assembled in China by Foxconn, where about 80% of Apple's production capacity is located. It's estimated that 90% of iPhones are manufactured in China, while 55% of Macs and 80% of iPads are manufactured in China. Beijing will face a 34% tariff, in addition to the current 20% duty, bringing the effective tariff rate to 54%.
India
Over the past two years, Apple has made significant efforts to increase iPhone production in IndiaAs the government seeks to increase domestic manufacturing of high-tech goods, 10% of iPhones are currently assembled in India. The company plans to increase India's share of iPhone manufacturing to approximately 15 to 20% by the end of 2025. A 26% tariff will be imposed on Indian products.
Vietnam
Vietnam has emerged in recent years as a prominent manufacturing hub for consumer electronics. Apple has increased its production in the country. Currently, 20% of iPads are manufactured in Vietnam, along with 90% of Apple's wearable products, particularly its smartwatch. Vietnam is poised to face significant tariffs after Trump imposed a 46% tariff on its imports.
other countries
Malaysia is a growing Mac manufacturing location and will be subject to a 24% tariff. Thailand, a small Mac production center, will be subject to a 36% tariff.
Apple also sources components for its devices from South Korea (25% tariff), Japan (24% tariff), and Taiwan (32% tariff).
Ireland, which produces some iMacs, will be subject to a 20% tariff.
Apple manufactures the Mac Pro only in Texas.
It's worth noting that Apple will raise prices to offset the new tariffs. It's estimated that every 10% of the tariffs imposed could be offset by a roughly 6% increase in the average selling price of a product. Experts also predict that Apple will need to increase the prices of many of its products to offset the costs incurred by the tariffs, as follows:
- iPhone and Apple Watch prices: 43% increase.
- iPad prices: 42% increase.
- AirPods and Mac prices: 39% increase.
Thus, the iPhone 16e price will increase from $599 to $856, while the iPhone 16 Pro Max price will increase from $1599 to $2300.
Conclusion
Ultimately, it's clear that Donald Trump's return to power poses challenges and obstacles for Apple and other companies across all sectors. New tariffs will increase production costs, which will impact the prices of Apple's devices. Let's not forget the reaction of countries that may impose similar tariffs on American products, potentially sparking a global trade war.
Source:
If I buy an iPhone 16, can I profit from it?
Hello Abdulhakim Al-Wahaib 🙋♂️, Of course, if you intend to invest in mobile phones, new devices like the iPhone 16 may be particularly desirable due to the expected price increase resulting from customs duties. However, you should also keep in mind that this requires careful study of the market and demand. And always remember, every investment carries a degree of risk 😅💸.
When writing an article like this, it is not useful to quote American sources or translations. It is known that Apple sends its shipments from China to the world, so they will not pass through America and will not be subject to the Trump tariff. However, it can have a limited impact due to the increase in other costs. Therefore, the percentage like 43% that was mentioned is large and only applies to the American market. I expect that consumers outside of America will enjoy a lower price, knowing that Apple's tricks will fool many, meaning that it will announce the price based on its price in America, and after a month, as usual, you will find it at a 25% lower price on sales platforms such as Amazon and others. I have been buying all Apple products at a lower price this way over the past five years, from iPads, Macs, iPhones, watches, and others. By the way, the warranty and quality are the same as if you bought from Apple. Therefore, my advice is not to buy until after a month has passed, and do not buy from Apple, but rather from approved or well-known electronic markets, because the price will be 25% lower due to the lack of tariffs in Arab countries on China like those in America.
Sulaiman Muhammad 🙋♂️, you seem to be an expert in the apple business 🍏! It's true that Apple ships shipments directly from China to the world, but these shipments may be affected by other increased costs related to tariffs. I think it's important to note that the article discusses the expected impact on product prices worldwide, not just in the United States.
If you have ways to get Apple products at lower prices, that's great! 👏👏 But everyone should make sure to buy products from a trusted seller to ensure product quality and warranty service.
Thanks for your advice and contributions! 😊👍
Not all devices are just phones, other companies have the same features and capabilities.
Now iPhone prices are high, so what if the prices increase and there are many excellent alternative options, the iPhone will be left to Apple?
Hello Abu Suleiman 🙋♂️, Yes, the prices are high, but that's not surprising considering the new customs duties that have been imposed. But let's remember that the iPhone is not just a phone, it's an experience! 📱✨ And good experiences are often expensive. And finally, those who love apples 🍏 will be satisfied with the price!
Thank God, as a consumer, development and technology are always in competition and there are alternatives. Why should one submit to arrogance? As one of the caliphs said, when meat became expensive, make it cheap.
Should I buy an iPhone now before it gets expensive?
Hello Android world, goodbye iPhone 🥹🥹
Yes, welcome to Android critics, today they have been guided!
All eyes on Harmony, it seems like me!
I don't expect Apple to raise its product prices because that would cause a huge loss in its already low sales. It seems that there are exceptions for Apple in exchange for investments in America.
Hi Abdulaziz 🙋♂️, Thank you for your insightful comment. However, it seems that Apple has found itself in a real predicament due to the new tariffs. Although raising prices may lead to a decline in sales, it may have to do so to cover the increased costs. And let's not forget that Apple has a very loyal audience who may continue to buy its products despite the price hikes! 🍏💰😅
The problem with us Arabs is that we are looking for imports from the global colonial countries and we are waiting for one master to fall and then follow another master, knowing that some Arab countries can do without the entire world with their capabilities that Western countries do not have. But unfortunately, we are waiting for America to fall and then follow China, for example.
In response to the so-called Karima, even though she is not Karima: From your response, it seems that you are one of Apple’s worshippers, even if you know that this company supports the Zionist entity and supports homosexuality.
Trump's first priority is money. He dies over the smell of the dollar. The fire is full, but his eyes are never full.
I think that the consumer will not be forced to change his phone until the end of the updates or move to other companies
The alternative and best option is to move towards Android.
I think there were some mistakes, as that cursed country was only imposed with tariffs of 17. But the funny thing is the tariffs imposed on some Arab countries even though they do not export to America or anywhere else. Syria, for example, is 37 or 34 percent, haha!
Welcome, translator 🙋♂️, thank you for your funny and insightful comment. Indeed, matters related to customs tariffs can sometimes be funny and mysterious, especially when it comes to countries that do not export much. However, let's not forget that these tariffs include all types of goods, not just technological products. In any case, a smile from you brightens our day 🌞🍏!
Will the increase be limited to the US market only or to all global markets?
Global economic conditions require tightening the belt and thus eliminating luxuries.
And what Trump did will certainly make things worse.
Conclusion: The consumer who used to change every two or three years will change every five or six years, and the one who will definitely be harmed is Apple, whose stock fell by 20% in two days.
The worst is yet to come if Trump's arbitrary policy continues.
The consumer's only weapon is: boycott. Who agrees with the consumer?
Oh Ali Taha 🙋♂️, you are indeed talking about a powerful weapon; boycotts are an effective way to influence companies and the market. But let's not forget that the choice is always in the hands of the consumer; they can choose to buy or boycott according to their interests. If quality and innovation are what the consumer is looking for, Apple remains an attractive option despite the price increases. 🍏💡
Consumers in the US are the most affected. However, Apple may seek to spread the additional costs across global markets to avoid placing the additional burden solely on the US market. However, I don't expect it to risk distributing the increase equally across all markets to maintain its market share.
On the contrary, this will affect the pricing of the iPhone all over the world. The regular iPhone will become more expensive than the Pro, and the Pro will increase in price.
The beginning of the end for Apple and the US economy as a whole.
What did you do?