There have been intensify care in late days that iPhones couldgo up in priceas a effect of the immense tariff visit on China by President Trump . Most of Apple ’s smartphones are manufactured in China , and some analyst have speculated that the extra levy could push up price by more than 40 pct — which has run to somepanic buying . But a newfangled report offer promise that this might not find .
A new investor bank note by analysts at Morgan Stanley ( seen byAppleInsider ) purpose a muckle of measures by which Apple could weather the core of the tariffs without raising prices , and while rest profitable . As proposed elsewhere , Apple could ramp up output in India , which bring forth 30 to 40 million iPhones per twelvemonth and facesfar lower tariffsthan China . Morgan Stanley then proposes Apple could push client towards the more expensive models with more reposition , which have a higher earnings perimeter and are thus well fit to take in the effects of tariffs .
Neither of these are easy solutions , and both are scheme Apple has already assay . It would be more a question of accelerating existing plan rather than starting entirely new one . Apple has been work to radiate its supply concatenation for some fourth dimension , partially in lightness of human - rights concerns over Chinese factory , but doing so is a tiresome unconscious process . ( It also makes a few iPhones in Brazil to meet local demand ; sources suggest thatcould also increase . )
On the storage upsell side , Apple did something alike in 2023 when it launched the iPhone 15 Pro Max at an entry - level damage of $ 1,199 with 256 GB of storage , compared to the iPhone 14 Pro Max ’s begin at $ 1,099 with 128 GB . It was thus the “ same Mary Leontyne Price ” gigabyte for GiB while requiring customers to spend more as a lower limit , thus increasing the iPhone ’s median selling cost . That ’s a win for Apple — especially since storage margins are much higher than handset leeway .
Whether Apple would raise minimum storage allocation or merely focalise its marketing on labour customer toward the 512 GB and 1 TB configurations is unsealed at this point in time . Morgan Stanley also acknowledges one other option , which does involve raise Leontyne Price but would make this more palatable for customers by present longer - full term finance choice and talking up carrier deals at theiPhone 17launch event .
These are n’t the only scheme , of course of study . Apple could just take the short - term hit to its profits , or appeal to the United States President for anexemption . If you ’d like to read more about the troupe ’s choice , take a look atHow Apple can manage Trump ’s duty .
