iPhones' new prices to potentially increase due to the imposed tariffs in trade disputes, as proposed by Apple.
Rewrapped
In the midst of a partial tariff reduction under the US-China trade agreement, smartphone makers, including Apple, are still saddled with a 20% tariff. To dodge links between price hikes and tariffs, Apple is focusing on new features and aesthetic redesigns.
Apple's CEO, Tim Cook, previously warned that tariffs would spawn an extra $900 million in costs this quarter. The tech giant is considering relocating production to the US, but this venture may take several years.
Reports suggest that Apple is already transferring some production to India, although the iPhone Pro and Pro Max models are still being manufactured in China. Experts predict India will be able to meet US demands for iPhones by 2026-2027, but China will remain the main supplier of components.
On May 10-11, trade and economic discussions transpired between the US and China in Switzerland. A mutual tariff reduction to 10% was announced for May 14, 2025.
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Adding Context: Apple aims to disperse iPhone production away from China, especially for US-bound devices, with plans to assemble all US-bound iPhones in India by the end of 2026. This shift is a response to mounting trade friction between the US and China and the related tariffs[3].
For the iPhone Pro and Pro Max models, particularly complex and special editions like the 20th-anniversary versions in 2027, Apple is most likely to persist manufacturing these in China. These models require extraordinary complexity, involving new parts and production techniques that China's efficient manufacturing infrastructure is best suited to handle[2][3].
So, in essence:
- Apple is shifting some iPhone production to India, focusing on assembling US-bound iPhones by the end of 2026.
- Despite this move, the Pro and Pro Max models, including the 20th-anniversary versions, are anticipated to continue being manufactured in China due to the intricate production demands and Apple's historical production patterns[2][3].
- There's yet no concrete indication that Apple is relocating full production of iPhone Pro and Pro Max models from China to other countries, except for the rising assembly work in India.
In summary, while Apple is diversifying iPhone production locations, production for the Pro and Pro Max models continues to primarily occur in China for the time being.
As Apple moves to assemble US-bound iPhones in India by the end of 2026, the production of the iPhone Pro and Pro Max models, including the 20th-anniversary versions, is likely to continue in China due to the models' intricate production demands and Apple's historical production patterns. Despite the shift in production locations, full relocation of the iPhone Pro and Pro Max production from China to other countries remains unclear for now.
