April 12 \u2013 The world\u2019s most popular gadgets \u2013 phones, laptops, tablets, smartwatches \u2013 could be about to get a lot more expensive in the US.<\/p>\n
Many of them are made in China, which now faces a 145% tariff on its goods imported to the US, under President Donald Trump\u2019s controversial trade policy.<\/p>\n
The effect this may have on the iPhone and its maker Apple is under the spotlight \u2013 with some analysts saying if costs are passed onto consumers, iPhone prices in the US could rise by hundreds of dollars.<\/p>\n
And if the tariffs impact the value of the dollar, it could become more expensive to import iPhones and other devices around the world \u2013 potentially leading to higher prices in UK shops.<\/p>\n
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Ben Wood of CCS Insight told the BBC that if tariffs remain in place, Apple may raise iPhone prices globally when the next iteration is launched.<\/p>\n
\u201cIt is unlikely the company would want to have differentiated pricing globally,\u201d he said \u2013 as the tech giant would want to avoid people buying the device cheaply in the UK and selling it on for profit in the US.<\/p>\n
Though others say<\/a>\u00a0they believe it could result in cheaper prices if firms which normally send their goods to the US instead send them to countries which don\u2019t have such steep tariffs, like the UK.<\/p>\n And there may be a significant change if the cost of tariffs is passed onto consumers globally \u2013 longer contracts to spread out the cost of the device.<\/p>\n While a phone contract may typically last two years, Mr Wood said some firms already offer four year deals, and he believed \u201cwe might see five-year contracts\u201d in 2025.<\/p>\n \u201cOne could argue it is almost like having a mortgage for your smartphone,\u201d he said.<\/p>\n The US is a major market for iPhones and Apple accounted for more than half of its smartphones sales last year,\u00a0according to Counterpoint Research<\/a>.<\/p>\n It says as much as 80% of Apple\u2019s iPhones intended for US sale are made in China, with the remaining 20% made in India.<\/p>\n Along with fellow smartphone giants such as Samsung, Apple has been trying to diversify its supply chains to avoid over-reliance on China in recent years.<\/p>\n India and Vietnam emerged as frontrunners for additional manufacturing hubs.<\/p>\n As tariffs took effect, Apple reportedly looked to speed up and increase its production of India-produced devices in recent days.<\/p>\nWhere are iPhones made?<\/h2>\n