Will Apple Increase iPhone Prices Because of New Tariffs? Ming-Chi Kuo Says They Won't
Image for Representation
After the prolonged period of uncertainty about what happens to the prices of Apple products because of the new tariffs imposed by the Trump Administration, noted Apple analyst Ming-Chi Kuo has weighed in on the matter. Kuo, in his latest note to investors, has clarified on Apple’s future strategies. Talking about Apple’s supply chain logistics and the consequences of the latest tariffs imposed on imports from China by the Trump Administration, Kuo confirmed that Apple is not going to increase the prices of any of its products in the near future. He also added that the tech company is all ready to absorb extra expenses and tariffs.
The noted analyst Kuo talked about the company’s ongoing plans about increasing its non-Chinese production. To avoid the extra tariffs, Apple will be working towards boosting its non-Chinese production, thus dealing with the demand enforced by the US market.
US President Donald Trump and the United States administration have proposed a 10% tariff on Chinese imports from September 1. The analysts from the Bank of America Merrill Lynch already spoke about the increased tariffs possible impact on Apple products.
Days after the increased tariffs hit Chinese markets, the shares in Apple in China sank 2.5% in morning trade on Monday. Surprisingly, Apple reported an improvement in its fortunes in China last week. Globally, iPhone sales fell 12% to $25.99 billion in the latest reported quarter.
According to Kuo, Apple dominant market share in the United States, along with its advanced production automation will mean the company will be able to absorb the increased costs, at least for a while. It is predicted that the iPhone demand in the US will be fully met by its production facilities in India and Vietnam as early as next year.