The ongoing trade war between the United States and China has, so far, not affected the iPhone, though one threat of a 10% tariff directly affecting electronics like the iPhone was close to being implemented, before being delayed until December. Due to the ongoing rising cost of importing goods to China, manufacturers like Apple have been working on ways to mitigate the extra charges and protect their revenues.
In a note to investors seen by AppleInsider, JP Morgan believes the primary lever for Apple to adjust the impact of the cost of the tariff is the production cost of the iPhone itself. Analysts believe the bill of materials has been reduced by between $30 and $50 per 2019 iPhone, which will enable Apple to absorb a large portion of the tariffs without affecting its US retail prices.
