Key Takeaways
1. Economic sanctions by the U.S. may lead to severe backlash and a potential “self-inflicted Economic Armageddon.”
2. Consumer buying power is expected to decline, with prices of premium smartphones, like the iPhone, potentially rising to $3,500.
3. Apple’s supply chain may face cost increases of 40% to 50%, contributing to higher product prices.
4. Rumors of a design overhaul for the iPhone 17 Pro series may not ease pricing concerns.
5. The current price for the 256GB iPhone 16 Pro Max is $1,149.99 on Amazon.
The economic sanctions recently enacted by the current U.S. administration have sparked significant backlash from trade analysts, including those at Wedbush Securities. They suggest that these measures could result in a “self-inflicted Economic Armageddon.”
Consumer Impact
If this scenario unfolds, it will probably be seen through a notable decline in consumer buying power, as prices for commonly sought-after items, such as new premium smartphones, are expected to rise. Wedbush estimates that an iPhone, which previously retailed for $1,000, could jump to as high as $3,500 once the tariffs are implemented.
Supply Chain Issues
This dramatic price surge is believed to be tied to the effects on Apple’s supply chain, which may experience cost increases of 40% or even 50%.
Upcoming iPhone Updates
If the rumors about the iPhone 17 Pro series receiving a design overhaul turn out to be true, it may not alleviate the situation. The anticipated new camera design, which is speculated to blend elements from both the 16 Pro Max and the Pixel 9 Pro XL, has recently surfaced via a leaked image.
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