The US government has recently placed new tariffs on products imported from other countries. This move is aimed at encouraging American companies to bring manufacturing jobs back home. President Donald Trump believes these tariffs will help create millions of jobs and strengthen local industries.
However, some experts are warning that this plan could make smartphones, especially iPhones, much pricier for buyers.
According to a CNN report, if Apple starts making iPhones completely in the United States, each phone could cost around $3,500 (Rs 3 lakh). Currently, an iPhone costs about $1,000. The big increase in price is due to the high cost of building and running advanced factories in the US.
At present, most iPhones are made in China, where labour and production costs are much lower. If Apple tries to shift production to the US, it would have to spend billions of dollars to set up new factories and supply chains — something that took decades to build in Asia.
The report also mentions that even moving a small portion of Apple’s supply chain to the US would take at least three years and $30 billion. This move would only cover about 10% of the company’s total production.
Apple’s global supply chain and future plans
An iPhone is made from parts that come from several countries. Chips are made in Taiwan, screens come from South Korea, and other parts are made in China. These are then assembled in Chinese factories and shipped around the world.
This global supply chain helps Apple keep costs low and profits high. It is one of the main reasons Apple has become a leading tech company.
Since the US tariffs were introduced, Apple’s stock price has dropped by about 25%. To reduce its reliance on China, Apple is now investing in other countries like India and Brazil, where tariffs are lower.
Even if Apple doesn’t build iPhones in the US, the cost of parts may still rise due to tariffs. If Apple passes this cost to customers, the price of new iPhones could go up by 43%.
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