Morgan Stanley Predicts Apple Supply Chain to be Hit Hard by Tariffs, iPhone Prices Could Soar

On April 5th, following U.S. President Trump's announcement of the "equal tariff" plan, Apple's stock price took a heavy hit for two consecutive trading days, resulting in a significant shrinkage of the market value. According to the estimation of investment bank Morgan Stanley, imposing tariffs on China will increase Apple's costs by approximately $8.5 billion annually. Reuters cited analysts as stating that if Apple fully passes on the tariff costs to consumers, the retail price of the iPhone 16 Pro Max in the U.S. will rise from the current $1599 to $2300 (approximately ¥16,750). During Trump's first term, Apple started to diversify its supply chain. However, the Trump administration plans to impose high "equal tariffs" on Southeast Asian countries, which will undoubtedly have a severe impact on Apple's supply chain. (Jinse)