Apple faces massive trouble after Trump imposed a whopping 125 percent tariff on Chinese goods. Most countries got a 90-day break from these fees, but China missed out completely. This creates huge problems since Foxconn runs its biggest iPhone factory in Shenzhen. The tech giant lost about $640 billion in value over just three days when the tariff news broke. That equals nearly 20% of Apple's total worth.
Morgan Stanley experts think Apple might still avoid raising iPhone prices. They suggest the company push customers toward buying higher-storage iPhone 17 Pro models instead of base versions. These pricier models give Apple 10-15% better profit margins on each sale. The company also needs to make more phones in India rather than China. Indian factories currently make about 30-40 million iPhones yearly, but America alone takes 66 million.
Even if India ramps up production fast, analysts say it would take 6-12 months to reach the needed levels. This timeline far exceeds the 90-day tariff pause Trump offered other countries. Everything depends on whether Indian-made phones avoid these new taxes altogether. Famous analyst Ming-Chi Kuo already warned that Apple might have no choice but to charge more for Pro models regardless.
Morgan Stanley experts think Apple might still avoid raising iPhone prices. They suggest the company push customers toward buying higher-storage iPhone 17 Pro models instead of base versions. These pricier models give Apple 10-15% better profit margins on each sale. The company also needs to make more phones in India rather than China. Indian factories currently make about 30-40 million iPhones yearly, but America alone takes 66 million.
Even if India ramps up production fast, analysts say it would take 6-12 months to reach the needed levels. This timeline far exceeds the 90-day tariff pause Trump offered other countries. Everything depends on whether Indian-made phones avoid these new taxes altogether. Famous analyst Ming-Chi Kuo already warned that Apple might have no choice but to charge more for Pro models regardless.
