The ongoing trade-war between the US and China has reportedly increased production costs of Apple's iPhone by as much as 3 percent. The increase will come into effect as China's new retaliatory tariffs kick in.
"Tariffs on the device's Chinese-made batteries and other components would increase its manufacturing cost by 2 percent to 3 percent," said Fortune quoting a Wedbush analyst Dan Ives as telling investors.
In order to recoup the same profit on each iPhone sold as before, Apple would need to increase iPhone prices by a similar amount.
"The price of an iPhone XS, for example, would rise from $999 to as much as $1,029," the report said.
The trade spat between the two biggest economies in the world has been influencing Apple the most for two main reasons. First, it assembles iPhones primarily in mainland China and secondly, it makes a major part of its revenue from sales in China.
Following the announcement of retaliatory tariffs on US goods worth $60 billion including US-produced batteries, shares of Apple Inc closed 6 percent lower on NASDAQ on Monday.
The tariffs announced will become effective from 1 June, allowing the two countries to make any negotiations in the meantime.
Earlier on 10 May, the trade war entered a new phase after the American President Donald Trump's administration announced $200 billion in new tariffs on Chinese imports.
With inputs from IANS