Will the iPhone also become expensive after a tariff hike? Know what Apple CEO Tim Cook said

There is an important news for those thinking of buying iPhone. Apple CEO Tim Cook has given a big statement on whether iPhone prices can increase amid the ongoing trade war between the US and China.

Tim Cook said that till now the tariffs (import duty) imposed by the US on China have not had much impact on the company's earnings. In the March quarter, Apple kept these increased costs under control by handling its supply chain better. But he is also not completely sure about what will happen in the coming months.

He clearly said that if there is no change in the current status of the tariff, the company may have to bear an additional cost of about $ 900 million (about Rs 7,500 crore).

Will iPhone prices increase?

Not yet, Apple has so far borne this increased cost itself and has not let it affect the customers. Tim Cook said, "Our team has handled the supply chain very well, and we will continue to do so."

Apple made a backup plan

Apple is already reducing its dependence on China. The company has shifted the manufacturing of many of its products to India and Vietnam. More than half of the iPhones sold for the US are now being made in India. At the same time, products like MacBook, iPad, AirPods and Apple Watch are being made in Vietnam. Tim Cook said, 'We had already understood that depending on a single country is a big risk. That's why we have spread the supply chain to different countries.'

Trump's policy and the threat of rising tariffs

US President Donald Trump had announced to impose 'tariffs up to 145%' on products coming from China. This could have had a big impact on companies like Apple. However, a few days later, the Trump administration exempted smartphones, computers and tech products from this, so that companies can get time to shift their production out of China.

But this exemption is not permanent. In the coming time, America can increase the tariff again, due to which the prices of iPhones and other gadgets can increase. At present, the prices of iPhones are stable, but there is no assurance as to how long they will remain so. With the change in tariff and international trade policy, Apple's strategy can also change. If the cost increases too much, then it can also affect the pockets of the customers.