Liv McMahon<\/span><\/p>\nTechnology reporter<\/span><\/p>\n<\/div>\n<\/div>\n\n
Zoe Kleinman<\/span><\/p>\nTechnology editor\u2022<\/span>@zsk<\/span><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n\n\n
Reuters<\/span><\/div>\n<\/div>\n<\/figure>\n\n
The world’s most popular gadgets – phones, laptops, tablets, smartwatches – could be about to get a lot more expensive in the US.<\/p>\n
Many of them are made in China, which now faces a 125% tariff on its goods imported to the US, under President Donald Trump’s controversial trade policy.<\/p>\n
And the effect this may have on the iPhone and its maker Apple is under the spotlight.<\/p>\n
Some analysts say that if costs incurred by tariffs are passed onto consumers, iPhone prices in the US could rise by hundreds of dollars.<\/p>\n<\/div>\n
Where are iPhones made?<\/h2>\n<\/p>\n\n
The US is a major market for iPhones and Apple accounted for more than half of its smartphones sales last year, according to Counterpoint Research.<\/p>\n
It says as much as 80% of Apple’s iPhones intended for US sale are made in China, with the remaining 20% made in India.<\/p>\n
Along with fellow smartphone giants such as Samsung, Apple has been trying to diversify its supply chains to avoid over-reliance on China in recent years.<\/p>\n
India and Vietnam emerged as frontrunners for additional manufacturing hubs.<\/p>\n
As tariffs took effect, Apple reportedly looked to speed up and increase its production of India-produced devices in recent days.<\/p>\n
Reuters reported on Thursday that Apple chartered cargo flights to ship more than 600 tons of iPhones from India to the US.<\/p>\n
Amid Trump’s 90-day pause on tariffs, including those levied on India, the country may be set to benefit from an iPhone manufacturing boost.<\/p>\n
The BBC has approached Apple for comment on the impact of tariffs on their operations and prices, but has not had any response yet. <\/p>\n<\/div>\n
How exposed is Apple to tariffs? <\/h2>\n<\/p>\n\n
Trump and his advisors have said the aim of its tariffs are to encourage more US manufacturing.<\/p>\n
However, the tech industry relies on a global network of suppliers for product components and assembly. <\/p>\n
This, and finding skilled workers to match the fast pace and low cost of production in Asia, means relocating supply chains is no simple feat.<\/p>\n
Apple committed a $500bn investment in the US in February – which the Trump administration believes will result in more homegrown manufacturing.<\/p>\n
But Wedbush Securities analyst Dan Ives said shifting parts of its supply chain from cheaper manufacturing hubs in Asia to the US will take a lot of time, and money.<\/p>\n
“The reality is it would take 3 years and $30 billion dollars in our estimation to move even 10% of its supply chain from Asia to the US with major disruption in the process,” he wrote on X on 3 April.<\/p>\n<\/div>\n