The ongoing US-China trade war has caused an increase in Apple iPhone production costs to 3%, reflecting Beijing’s new tariffs.
“Rates for Chinese batteries and other components of the device will increase production costs by 2 to 3 percent,” Wedne Danny analysts at Wedbush told investors.
To get the same profit from every iPhone sold as before, Apple must increase the price of the iPhone by the same amount.
“The price of the iPhone XS, for example, will rise from $ 999 to around $ 1029,” the report said.
According to Ivs, Apple’s costs could rise if the Trump government goes through a plan to add $ 325 billion to Chinese resources. In this case, the iPhone costs an additional $ 120 for production.
Ifeuratings are only the latest analysts from the impact of the US-China trade war, the report added.
On May 10, this battle entered a new phase when President Donald Trump’s government announced China’s new imports of US $ 200 billion.
In response, China responded on Monday by announcing a $ 60 billion rate for batteries, coffee and US-made products. This rate will take effect on June 1.