Apple iPhone production cost to rise by 3 per cent because of the new retaliatory tariffs imposed by Beijing, thanks to the ongoing trade war between the US and China.
Fortune quoted a Wedbush analyst Dan Ives as telling investors that "Tariffs on the device's Chinese-made batteries and other components would increase its manufacturing cost by 2 per cent to 3 per cent".
In order to recoup the same profit on each iPhone that was sold before, Apple will be required to increase the iPhone prices by a similar amount.
The report said, "The price of an iPhone XS, for example, would rise from $999 to as much as $1,029".
According to Ives, Apple's cost could really soar high in case Trump administration follows through with a plan to add a $325 billion additional tariffs on Chinese goods and if this happens the iPhone could possibly cost an extra $120 each to produce.
The report added that according to Ives' estimates are just the latest by analysts about the impact of the U.S.-China trade war.
On May 10 the US- Chinese fight went into a new phase when Trump's administration announced $200 billion in new tariffs on Chinese imports.
With this China went on and retaliated by announcing $60 billion in tariffs on US-produced batteries, coffee, and other products, which would take effect on June 1.