iPhone to get dearer for US, say experts

TRADE TUSSLE

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US President Donald Trump's push on tariffs on imported iPhones will make the device expensive for Americans due to higher duty along with higher cost of production, analysts and experts said.

Neil Shah, Vice President of Research at Market research and analysis firm Counterpoint Research, said that relocating Apple's manufacturing ecosystem to USA in near to midterm is not only impractical but also infeasible as Apple's supply chain is completely Asia-heavy around China, India and Vietnam.

"It's not just about Foxconn opening a factory in the USA but also the supply chain has to relocate closer to the USA, which is beyond question. Second, even if Apple's partner starts assembling in the USA, it will be at least 10-20 per cent more expensive. So it would eventually be as expensive as the 25 per cent tariff," he said.

Trump has again pushed for the manufacturing of iPhones in US and not in India or anywhere else for sale in the country.