iPhone may reach 60 million VND because of US tariffs

On April 3, Mr. Trump imposed a series of new tariffs on many countries, threatening to disrupt global supply chains and push up consumer prices. If Apple passes all of these costs on to buyers, iPhone prices could rise by 30% to 43%, according to analysts at Rosenblatt Securities.

iPhone 16 Pro advertising image. Photo: Apple

Most iPhones are still made in China, where they are subject to a 54% import tax. If Apple doesn’t get the exemption it previously received, it will have to make a difficult decision: either absorb the huge tax bill or make customers pay more.

As a result: the iPhone 16 (currently priced at $799) could rise to $1,142; the iPhone 16 Pro Max (the top-of-the-line model with a 6.9-inch display and 1TB of storage) could go from $1,599 to nearly $2,300.

The immediate effect was that Apple's stock price plunged 9.3% on Thursday, marking its worst decline since March 2020.

During his first term, Trump imposed tariffs on Chinese goods to encourage American companies to move factories home or to neighboring countries like Mexico. However, Apple received some exemptions. This time, however, it did not.

"We thought that an iconic brand like Apple would be spared, like last time. But the reality is completely opposite," said Barton Crockett, an analyst at Rosenblatt Securities.

While Apple may raise prices, that doesn’t mean customers will be willing to shell out hundreds of dollars more to upgrade their devices. In fact, iPhone sales have been sluggish lately. New Apple Intelligence features, including notification summaries, email rewrites, and ChatGPT integration, haven’t been enough to spur demand for new devices.

Angelo Zino, an expert at CFRA Research, said that Apple is unlikely to pass on more than 5% to 10% of the tariff cost to users. "It is likely that Apple will delay the sharp price increase until the launch of the iPhone 17 in the fall," he predicted.

The high prices could turn off consumers and give rival Samsung a huge advantage. Unlike iPhones, Samsung smartphones made in South Korea are subject to much lower tariffs than those imported from China.

Experts at Rosenblatt Securities warn that if Trump’s tariffs actually take effect, Apple could lose up to $40 billion. This means that there is huge pressure on CEO Tim Cook and Apple’s leadership to negotiate with the White House as well as the Chinese government.

Cao Phong (according to Fortune, BI, Reuters)

Source: https://www.congluan.vn/iphone-co-the-cham-moc-60-trieu-dong-vi-thue-quan-my-post341421.html