The US government recently introduced tariffs on goods from other countries to encourage companies to bring manufacturing jobs back to the US. President Donald Trump believes that this step will help create millions of new jobs and promote local industries.

However, some experts feel that this scheme may make smartphones more expensive for consumers.

The iPhone cost can reach $ 3,500

According to a CNN reportIf Apple made iPhones completely in the United States, the price of each phone can jump up to about $ 3,500 (Rs 3 lakh). An iPhone, currently, will cost around $ 1,000. The high cost of manufacturing and maintaining advanced factories in the US will increase a huge price.

So far, most iPhones are produced in China, where labor costs are cheaper. Producing the same phone in the US would mean that Apple would have to invest billions of dollars in the construction of new features and establish a sophisticated supply chain – something that took decades to create in Asia.

The report claimed that transferring a small section of Apple’s supply chain in the US will cost at least three years and $ 30 billion. This will only move about 10% of Apple’s manufacturing.

Apple dependence on Asia

The iPhone making parts come from many different countries. For example, chips are mainly made in Taiwan, the screens come from South Korea, and other components are produced in China. All these parts are then collected in Chinese factories, before I sent iPhones worldwide.

This international supply chain enables Apple to keep the cost low and enjoy high profit. It is also part of the reason that Apple has become one of the most successful technology companies in the world.

Tariffs affect Apple’s business

Apple’s share price has fallen by about 25% since the announcement of the new tariff.

To cut back on dependence on China, Apple has started looking for alternative sites to produce its products. It is diverse in countries like India and Brazil, where there is a low tariff.

Even if Apple does not move manufacturing in America, iPhone prices can still go up. This is because more and more tariffs will increase the expenses of import parts. If Apple charges it to consumers, the cost of the new model can be up to 43%.

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