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US-China trade war could make iPhones 3% more costly

IANS  |  San Francisco 

The ongoing trade-war between the US and has caused Apple's production costs to rise as much as 3 per cent because of the new retaliatory tariffs imposed by

"Tariffs on the device's Chinese-made batteries and other components would increase its by 2 per cent to 3 per cent," Fortune quoted a as telling investors.

To recoup the same profit on each sold as before, would need to increase prices by a similar amount.

"The price of an iPhone XS, for example, would rise from $999 to as much as $1,029," the report said.

According to Ives, Apple's costs could soar higher if the follows through with a plan to add an additional $325 billion in tariffs to Chinese goods. If that happens, iPhones would cost an extra $120 each to produce.

Ives' estimates are just the latest by analysts about the impact of the U.S.-trade war, the report added.

On May 10, that fight entered a new phase when announced $200 billion in new tariffs on Chinese imports.

In response, on Monday retaliated by announcing $60 billion in tariffs on US-produced batteries, coffee, and other products. Those tariffs would take effect on June 1.



(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, May 15 2019. 10:52 IST