Are you thinking of buying an iPhone this year? If so, there is an important news for the buyers. Apple's CEO Tim Cook has made a big statement on whether the prices of iPhone may rise during the ongoing trade war between the US and China.
Tim Cook said the import duty imposed by the United States on China till now has not had much effect on the company's income. During the March quarter, Apple managed this growing expenses by management of his supply chain well. But he is not completely sure what will happen in the coming months. They clearly stated that if the current tariff state does not change, the company may have to bear the additional cost of about $ 900 million (about Rs 7,500 crore) (Photo courtesy – Instagram/ISTOCK)
Will iPhone prices rise?
Appeal So far, these increased prices have been sued by themselves and they have not given any blow to their customers. Regarding this, Tim Cook said, “Our team has handled the supplies chain very well and we will continue to do it.” This means that Apple is not currently raising the price of iPhone, but if the situation is worse, the prices can rise.
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Apple is already reducing its dependence on China. The company has moved many of its products to India and Vietnam. More than half of the iPhone sold in the United States is now made in India. Products like MacBook, iPad, Airpods and Apple Watch are being manufactured in Vietnam. Tim Cook said, 'We had already realized that relying on the same country was a major threat. That is why we have spread the supply chain in different countries.
Trump's policy and risk of increasing charges
US President Donald Trump had announced to impose 'up to 5% tax' on products coming from China. This could have had a big impact on companies like Apple. However, a few days later, the Trump administration currently discouraged smartphones, computer and technology products, so that companies will have time to move their product out of China.
But this suit is not permanent. America once again in the coming days To increase the tariff Can, which can increase the prices of iPhone and other gadgets. Currently the prices of the iPhone are stable, but not sure how long it will remain. Apple's strategy can also change with changes to tariff and international trade policy. If the cost increases too much, it is the current situation that can affect the pockets of the customer.
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