Apple, Google bet on midrange models made outside of China as tariff wars reshape markets

The news: With China and the US both imposing 145% tariffs on each other’s goods, there’s an increasing likelihood that the price of electronics and smartphones could rise, per CNBC.

This could make midrange smartphones like Apple’s iPhone 16e, and Google’s Pixel 9a, both currently starting at $599, more attractive options to consumers, especially since neither model is made in China.

Getting ahead of China tariffs: Apple and Google have managed to diversify phone manufacturing out of China, at least for cheaper models aimed at emerging markets.

• Apple told The Economic Times that "the ‌iPhone 16e‌ is being assembled in India for Indian consumers and for export to select countries."
• Google has manufactured devices in Vietnam since 2019, including the Pixel 9a, in response to the US-China trade war, per Nikkei.

Why it matters: US smartphone manufacturing isn’t viable—yet. A domestically made iPhone could cost up to $3,500, per CNBC. 

Tariff-driven panic-buying exposed how quickly consumers react to economic shifts and confirmed steady demand for smartphones. One solution could be to focus on midrange models from Apple, Google, and Samsung that are meeting most users’ needs.

Our take: Tariff-related production slowdowns will raise smartphone prices in the long term and they could also delay innovation by slowing yearly product and feature release cycles. 

Consumers should track tariff developments closely and consider midrange models from Apple, Google, and Samsung as smart bets—both for price stability and availability.

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