Author Topic: iPhones made in America would cost....  (Read 162 times)

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Offline segnosaur

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Re: iPhones made in America would cost....
« on: September 14, 2018, 12:36:03 pm »
https://www.vox.com/technology/2018/9/13/17851052/apple-iphone-price-china-trump-us-trade

About the same  ???
While that article might have some accurate numbers, I think its reasoning and conclusions may be incorrect.

First of all, assuming the numbers are correct, it points to 2 phones costing around $700-$1000, and suggests that the price increase would be between $30-100 (depending on whether the phones are manufactured with imported or domestically created parts.) Depending on the combination of factors, that's a price increase anywhere from 3%-14%. If you bump up the price of a product by 1/10th, consumers will probably notice. (Brand loyalty may keep some customers in the fold but at that type of increase they will lose some sales, especially if, for example, Android phones continued to be cheaper.)

Secondly, the article seems to rely far too much on 'gross profit margins' when it suggests that costs could "be absorbed", which seems to ignore issues like taxes and (probably more importantly) Research and Development costs. Those R&D costs would not be changing.