Last week, the president of the United States wanted the world’s most valued company to stop production of its devices in China and start plants in the US instead. Donald Trump also threatened Apple that a number of tariffs would be applied on its product if it does not comply with the president’s suggestion. Now, Apple has confirmed that the proposed tariff would increase the prices of its various products including Apple Watch, AirPods, Apple Pencil, Mac Mini, cables, chargers and adapters for the devices. It should be noted that the company has not mentioned the case of Apple iPhone, which is the major source of income.
When the tariffs are applied on goods that enter the US territory from other nations, especially China, Apple, and other companies would be forced to adjust the amount in the form of a price hike. According to a letter that was sent to the US Trade Representatives, the aforesaid products will be the victim of the price hike. It has not been made clear why iPhones are being excluded from the list. Although the company has kept silence in the specificities, market analysts and experts have a rough figure on the expected price hike of products in the list.
Experts believe that products like AirPods and Apple Watch would face a price increase of 10%. Users will have to pay 110% price if they want to own products like Apple Watch, AirPods, Apple Pencil and of course the adaptors. For the low-end model of the Apple Watch, users will have to pay an extra of around $32. On the other hand, purchasing the AirPods will cost you an extra $16 soon enough. Apple has not specified how it is going to battle the trade-war between the US and China. However, it’s clear that customers have to face the ultimate consequence of all these tariffs.