iPhone production cost at risk of surging 50pc per unit

Apple’s iPhone production costs could reportedly surge by 50 percent per unit due to US President Donald Trump’s latest tariff shock, as most iPhones are assembled in China, according to Chinese state broadcaster CCTV.

The latest US tariffs could lead to annual losses of up to US$33 billion (HK$257.4 billion) for Apple, Morgan Stanley estimated.

A 256GB iPhone 16 Pro is priced at around US$1,100, CCTV reported.

The report, citing data from US media, said that the current production cost for the model is nearly US$580.

However, with the newly imposed 34 percent tariff on Chinese-made goods, the cost per unit could rise to US$876.79, a jump of more than 50 percent.

The Trump administration has raised the total duty on all Chinese imports to the United States to 54 percent when combined with existing levies.

STAFF REPORTER