Apple plans to mark the 20th anniversary of the iPhone in 2027 with a special edition smartphone that will feature a major redesign and “a lot of glass.” However, the price of the new product may be the highest in the brand’s history due to high tariffs on Chinese components and difficulties in relocating production.
Image source: Apple, 9to5mac.com
Despite moving some production to India, Apple can’t yet completely abandon China. Currently, only about a third of the US’s annual demand is produced in India, according to 9to5Mac, and the anniversary model will require new technologies and parts that are difficult to produce outside of China. As Bloomberg notes, “Apple has never released the first batch of devices with a radically new design outside of China.”
In addition, Apple CEO Tim Cook has repeatedly emphasized the high level of Chinese manufacturing, and although the company is trying to diversify its supply chains, it is not possible to quickly abandon Chinese production. This creates a problem, since current tariffs on goods from China reach 145% and may even reach 245%, which will inevitably affect the price of the iPhone.
Experts doubt that Apple will have time to launch production of innovative models in other countries by 2027 due to the fact that the anniversary iPhones will be incredibly complex to manufacture and there are no guarantees that they will be made outside of China. That is, even with a partial transfer of assembly, the main burden will still fall on Chinese factories.
If the US tariff policy does not change, the price of the new product risks being significantly higher than usual. Buyers may have to pay not only for the premium design, but also for Apple’s additional costs for logistics and duties. Thus, although the 20th anniversary iPhone promises to be a technological breakthrough, its price may cause debate.