Apple is determining a solution after President Donald Trump announced that it is wiping new rates on Chinese imports. Recipient rates for a number of countries would come into effect on April 9, but Trump granted a postponement of 90 days for most of them. However, he imposed a 104% rate of Chinese goods and increased it to 125% later that day, with the increase immediately.

These rates are expected to affect Apple, which manufactures most of its devices in China, just like most other technical and AI businesses. IPhones accounts for about half of Apple’s revenue, much more than any other product. The iPhone is the most popular smartphone in the US and has a market share of more than 50%.

What will an iPhone cost with the new rates?

Well -known technical analyst Dan Ives told CNN That these rates can create a “Category 5 price storm” for personal electronics, including iPhones. He compares the tax of Chinese goods at such high rates with a boat upside down in the sea without life raffles’ – meaning few technical companies, including Apple, have viable manufacturing alternatives outside China.

The alleged purpose of the rates is to drive more manufacturing back to the US, but Ives said it would raise prices exponentially. He estimated that a Chinese -made device sold for about $ 1000 would cost $ 3,500 if made in the US, a price point that many consumers could not afford. Moving Apple’s supply chain to the US will also take years, making it an impractical solution to the business for the business and for consumers who are rating to the latest iPhone. Given the disadvantages, Apple is unlikely to switch its manufacturing to the US.

As the tariff landscape continues to shift, the estimate of future iPhone prices remains difficult. However, in an analysis of UBS, UBS on Wednesday found that the reciprocal rates could increase the price of the iPhone 16 Pro Max 256 GB, made in China, by about $ 675, a 56%increase. The iPhone 16 Pro Max is the most advanced model currently available and contains artificial intelligence capabilities.

If Apple can move its production to India, which is currently excused from reciprocal rates, it may help to compensate the price increase. The same analysis of UBS has found that the cost of an iPhone 16 Pro 128 GB, which costs $ 999 in India, could rise to $ 1,119, a more modest 12%increase.

Given the disadvantages, Apple is unlikely to switch its manufacturing to the US, although ongoing production in China is too expensive for the business or consumers to carry.