{"id":590785,"date":"2025-04-10T08:49:47","date_gmt":"2025-04-10T06:49:47","guid":{"rendered":"https:\/\/mybroadband.co.za\/news\/?p=590785"},"modified":"2025-04-10T08:49:53","modified_gmt":"2025-04-10T06:49:53","slug":"iphone-price-warning","status":"publish","type":"post","link":"https:\/\/mybroadband.co.za\/news\/smartphones\/590785-iphone-price-warning.html","title":{"rendered":"iPhone price warning"},"content":{"rendered":"\n<p>It\u2019s possible for Apple to move iPhone production to America, but it would almost double the cost of making the device while creating logistical headaches, according to Bank of America.<\/p>\n\n\n\n<p>\u201ciPhone cost can increase 25% purely on higher labour cost in the US,\u201d BofA analysts led by Wamsi Mohan wrote in a note to clients on Wednesday.\u00a0<\/p>\n\n\n\n<p>While the tech giant can find domestic labour for assembly, a \u201csignificant portion\u201d of parts used in manufacturing the iPhone would still be assembled in China and imported to the US, they added.<\/p>\n\n\n\n<p>Assuming Apple has to pay reciprocal tariffs on those imports, its total cost would rise 90% or more, they estimated.<\/p>\n\n\n\n<p>The estimate comes as President Donald Trump zeros in on China for his trade fight. <\/p>\n\n\n\n<p>The Trump administration paused its reciprocal tariffs on dozens of countries for 90 days, but&nbsp;increased its duties on China&nbsp;to 125%. Meanwhile, China slapped&nbsp;84% retaliatory levies&nbsp;on American goods.&nbsp;<\/p>\n\n\n\n<p>Apple shares are soaring on the news, up more than 10% for their best day since July 2020. <\/p>\n\n\n\n<p>But the stock has taken a beating this year, losing 23%, and is down 14% since Trump\u2019s tariff announcement on April 2, erasing $479 billion (R9.2 trillion) in market capitalization.&nbsp;<\/p>\n\n\n\n<p>Rosenblatt Securities warned last week that levies could \u201cblow up\u201d the stock. And Wedbush\u2019s Dan Ives, a long-time technology bull, cut his price target, noting that a tariff fight would be a \u201ccomplete disaster\u201d for the company. <\/p>\n\n\n\n<p>Meanwhile, fear of price increases spurred iPhone&nbsp;<a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2025-04-07\/apple-customers-dash-to-stores-to-buy-iphones-ahead-of-tariffs\" target=\"_blank\" rel=\"noreferrer noopener\">panic buying<\/a>&nbsp;last weekend.<\/p>\n\n\n\n<p>For Apple to make relocating its final assembly of iPhones to the US viable, it would need tariff waivers on components and sub-assemblies manufactured outside of the country, Mohan wrote. However, he doesn\u2019t see this happening.<\/p>\n\n\n\n<p>\u201cUnless it becomes clear as to how permanent the new tariffs are, we do not expect Apple to take the step of moving manufacturing into the US,\u201d said Mohan, who holds a buy rating and a $250 (R4,824)price target on the stock, which is currently trading above $190 (R3,667). <\/p>\n\n\n\n<p>\u201cWe do expect, however, that Apple will continue to diversify its supply chain, and also increase production of iPhones in other countries such as India.\u201d<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"944\" height=\"600\" src=\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2025\/04\/430896925.jpg\" alt=\"\" class=\"wp-image-590787\" srcset=\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2025\/04\/430896925.jpg 944w, https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2025\/04\/430896925-600x381.jpg 600w, https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2025\/04\/430896925-768x488.jpg 768w\" sizes=\"(max-width: 944px) 100vw, 944px\" \/><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>Apple moving the production of the iPhone to the US would almost double the cost of making the device.<\/p>\n","protected":false},"author":341034,"featured_media":590788,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sma_x_autopost_status":"idle","_sma_x_autopost_error":"","_sma_x_post_id":"","_sma_facebook_post_id":"","_sma_instagram_post_id":"","_sma_threads_post_id":"","_sma_x_attempts":0,"footnotes":""},"categories":[17934],"tags":[605,35045,80148,96966,98927,48152,14639],"class_list":["post-590785","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-smartphones","tag-apple","tag-donald-trump","tag-iphone-15","tag-iphone-16","tag-iphone-16e","tag-iphones","tag-tariffs"],"_links":{"self":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/590785"}],"collection":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/users\/341034"}],"replies":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/comments?post=590785"}],"version-history":[{"count":4,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/590785\/revisions"}],"predecessor-version":[{"id":590806,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/590785\/revisions\/590806"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media\/590788"}],"wp:attachment":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media?parent=590785"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/categories?post=590785"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/tags?post=590785"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}