Technology Hot News Spot

Saturday, January 28, 2017

Analyst says Apple should charge $100 to $200 more for a special iPhone model made in the U.S.


Apple, its suppliers, and the companies it hires to assemble the iPhone are all talking about finding a way to produce the handset in the U.S. to appease President Donald Trump. The problem is that Apple will have to pay more for U.S. based supplies, components and labor. That will force the tech titan to do one of two things; raise prices to maintain current margins, or make less money on handset sales.

A Wall Street analyst by the name of Brian White says that he has a solution. White, who works for Drexel Hamilton, says that Apple should produce a special "Made in America" version of the iPhone. This special model would be priced with a $100 to $200 surcharge allowing A pple to recoup some, or all, of the additional costs it would take to build the device in the U.S. White said that he believes there would be a market in the states for such a device.

Trump has said that he would increase tariffs by as much as 45% on overseas trade. One government controlled newspaper in China said following Trump's election, that such a tariff would put a crimp in Chinese iPhone sales.

Would you pay extra for a version of the Apple iPhone made in the U.S.A.?

source: CNBC



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