Apple’s share price plunged to such an extent it lost the crown as the world’s most valuable company to Microsoft in recent days following Donald Trump’s trade war
The price of an iPhone is set to skyrocket by hundreds of pounds due to Donald Trump’s trade war, experts claim.
Most of Apple’s devices are made in China but the parts involved come from a staggering array of nearly 50 countries – all of which have seen tariffs slapped on them by the US President. As a result, Apple’s share price has fallen to such an extent it lost the crown as the world’s most valuable company to Microsoft this week.
Prices of groceries, clothes and other items are set to rocket in the UK. The iPhone, one of Apple’s best-selling products, will also become more expensive, it is thought. It is understood Mr Trump, 78, wants to manufacture the devices on home soil – rather than importing from Asia – which experts say will only add to the chaos.
“Ultimately Apple is interested in maintaining its growth margin, so increases in the raw costs will predictably increase the costs of the iPhone,” Ben Barringer, global technology analyst at financial experts Quilter Cheviot said today.
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Apple has one of the most complex supply chains that has ever been designed in human history, spanning almost 50 countries across the globe, with various components sourced from specialist companies, chiefly in East Asia.
Analysis of Apple company supplier information shows 84 per cent of iPhone component suppliers have some links to mainland China, at 158 out of 188 suppliers. Taiwan and Singapore in second and third place still fall far behind China for supplier locations.
Mr Barringer added: “The tariffs announced are going to have a profound impact on supply chains globally, and not just on US consumers. The Apple chief executive will then have two choices – do you put up the price, or take a hit on your growth margins? My logic would say that the tariffs into the US impact the cost of making the iPhone and the Chinese tariff will increase the retail price in China.”
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Experts told Mail Online the cost of a £999 iPhone 16 Pro in Britain could rise by up to £400 as a result of Mr Trump’s tariffs. In America, price rise predictions have been far higher, with some suggesting the cost of the devices could triple.
Insiders say it is unlikely Apple boss Tim Cook will want to set various different price points around the world, so any increase in the US will likely be mirrored in the UK and elsewhere. The UK has, though, not imposed tariffs. The Mirror has contacted Apple today for comment.
Mr Trump last night announced a 90-day pause on tariffs – except for China, due to their retaliation, increasing their levy to a staggering 125 per cent. China assembles nine in every 10 iPhones, it is understood.