Following recent statements from US President Donald Trump that Apple should produce its devices in the US to avoid Chinese import tariffs, analysts have weighed in on the matter.
“Apple prices may increase because of the massive tariffs we may be imposing on China – but there is an easy solution where there would be zero tax, and indeed a tax incentive,” Trump said on Twitter.
The tariffs, however, are only set to affect the Apple Watch, AirPods, Mac mini, and Apple Pencil.
According to a report by CNBC, though, Bank of America Merrill Lynch said Apple “may respond to Trump’s pressure by asking its partners to bring some final iPhone assembly operations into the US”.
The result of moving all final iPhone assembly into the US will result in a 20% price increase on the smartphones, said the bank.
This is to offset increased labour costs in the US.
Analyst Wamsi Mohan said that if Apple moves 10% of its iPhone assembly to the US, prices will rise by 8%. A 50% assembly shift will see prices go up by 14%.