Nintendo postponed the pre-order for Switch 2 in the US and to find out what to do about the tariff, which President Trump put on two manufacturing hubs, which depend on the ninstendo-China (54%) and Vietnam (46%). The $ 450 retail price that was initially declared is quite likely to go up after the pre-order is re-rescheduled. Apple creates most of its iPhones in China, but it is also promoting production in India, including making a pro model for the first time (tariff on imports from India is “26%” only).
So, what will Apple do? Cupertino is allegedly stocking inventory to soften the tariff shock. Because once they hit, prices will touch the sky. A new report from The Wall Street Journal With information from I fix it And Techinsights The 256GB iPhone breaks the price of components for the 16 Pro and calculates the impact of 54% tariffs on China.
The total bill (BOM) comes with the cost of up to $ 580 for $ 549.73 (pre-tariff) with the assembly and testing. The most expensive components are rear camera array ($ 126.95), A18 Pro chipset ($ 90.85) and display ($ 37.97). The cost of 256GB storage is $ 20.59.
Apple iPhone 16 supporter retail prices in America
In retail, Apple sells 256GB iPhone 16 Pro in $ 1,100. However, the tariff does not apply to the retail price, but at the cost of components. With that, Wsj Calculates that the cost of Apple will increase by nearly $ 847 – an increase of $ 300.
Compared to 26% for India, tariff on imports from China is 54%. Apple was intelligent to diversify its production base, but even though it begins to build American iPhones in India, we are still seeing a huge increase in costs.
Apple has a solid advantage margin on its products, which can absorb some effect – this was when the tariff was 10%. But we suspect that Apple will still do the same that it is 54%. Instead, it will pass consumers some of that extra cost (most? All?). Nintendo Switch 2’s launch date remains unchanged and the original $ 450 increase should be given a clue of what to expect when the iPhone 17 series arrives in September (Nintendo is also famous for its profit margin).