There were escalating concerns in recent days that iPhone can rise the price as a result of the huge definitions that President Trump imposes on China. Most of the Apple smartphones are manufactured in China, and some analysts may speculate that additional fees can rise in prices by more than 40 percent – which led to some panic. But a new report presents the hope that this may not happen.
A new investor note by analysts at Morgan Stanley (which Appleinsider) sees a set of measures through which Apple can overcome the effects of definitions without raising prices, while remaining profitable. As proposed elsewhere, Apple can intensify production in India, which produces between 30 to 40 million iPhone devices annually and faces a much lower tariff than China. Then the Morgan Stanley suggests that Apple can push customers towards the most expensive models with more storage, which has a higher profit margin and therefore it is better equipped to absorb the effects of definitions.
None of these solutions is easy, both of which are Apple. It will be more than the issue of accelerating the current plans instead of starting completely new lines. Apple diversifies its supply chain for some time, partly in light of human rights over Chinese factories, but doing this is a slow process. (It also makes some iPhone devices in Brazil to meet the local demand; the sources indicate that it may also increase.)
On the side of UPSell Storage, Apple did something similar in 2023 when I launched the iPhone 15 Pro Max at a novice price of $ 1,199 with a storage capacity of 256 GB, compared to iPhone 14 Pro Max starting at $ 1,099 with 128 GB. Thus, Gigabyte was “the same price” for Gigabyte with customer demanding a minimum spending, thus increasing the selling price in iPhone. This is a victory for Apple – especially since storage margins are much higher than phone margins.
Whether Apple will collect the minimum storage allocations or focus its marketing only on pushing customers towards 512 GB and 1 TB at this stage. Morgan Stanley also admits one other option, which includes raising prices but will make it more acceptable to customers by providing long -term financing options and talking to the transport company deals at the iPhone 17 launch event.
These are not the only strategies, of course. Apple can take a short -term blow to its profits, or like the president to obtain an exemption. If you want to read more about the company’s options, take a look at how to deal with Apple with a Trump tariff.