1 week Ago
Apple’s sprawling supply chain, from Chinese factories to global retail stores, faces unprecedented uncertainty as the US-China trade war intensifies, according to analysts and consumers. While Chinese consumers are not rushing to Apple stores to pick up iPhones over fears of price hikes – most iPhones are not subject to Beijing’s retaliatory 84% tariffs on US goods – there are signs of mounting concerns about supply disruptions and rising costs generally. A supply chain expert close to Apple suppliers in China, who requested not to be named because of the sensitivity of the matter, said that prices for existing iPhone models sold in the country are unlikely to change.
However, the iPhone 17 series could see higher prices as part of a global adjustment, the person added. The new tariffs target US-made products and do not apply to iPhones, the expert said. There has been a growing number of customer inquiries about price increases at Apple’s flagship store in Beijing’s Sanlitun shopping area, according to a store employee.
Apple has yet to issue an official statement regarding concerns about the impact of the new US and China tariffs, which took effect this week. Apple did not respond to a request for comment on Thursday. For now, prices for the iPhone 16 series, including the recently launched iPhone 16e, remain unchanged across major Chinese e-commerce platforms such as Alibaba Group Holding’s Taobao and Tmall marketplaces and JD.
com, as well as Apple’s China website. Alibaba owns the South China Morning Post. China remains Apple’s largest overseas market, and it is the company’s primary assembly hub for iPhones and many of its other devices.
US President Donald Trump’s decision to impose additional tariffs on China, bringing them up to 125%, has forced Apple to take drastic measures to deal with disruptions to its supply chain. Reuters reported that Apple chartered cargo flights to ferry 600 tons of iPhones – as many as 1.5 million units – to the US from India, to get them into the country before the new tariffs took effect.
Analysts predict steep price hikes for coming iPhone models, according to a Wednesday report from consultancy Counterpoint. China’s Huatai Securities estimated that Trump’s tariffs could add an additional US$240 to the price of each iPhone sold in the US. If the full cost were passed on to consumers, it could raise North American retail prices by 24%, analysts at the financial services firm wrote in a note to clients last week.
Meanwhile, Luxshare Precision Industry, a key Apple supplier, denied reports that it plans to establish manufacturing facilities in the US, as China pushes to prevent supply chain realignment. – South China Morning Post.
