Apple forces partners to reduce component prices to cope with import taxes into the US?

(Dan Tri) - Apple is said to be forcing partners like Samsung and LG to reduce the prices of iPhone production components to cope with the new import tax applied by the Trump administration.

Most of Apple's products are now manufactured in China, making the tech giant heavily affected by the new import tax of up to 55% imposed by the Trump administration.

This is expected to significantly increase the prices of key products such as iPhone, iPad, and MacBook in the US market, reducing Apple's competitiveness at home.

To cope with this situation, Apple is said to be looking for ways to reduce production costs, including putting pressure on component suppliers.

Apple wants its partners to reduce iPhone component prices to cope with the Donald Trump administration's import tax (Illustration: Getty).

According to The Bell (Korea), Apple is putting pressure on Samsung Display and LG Display, two major screen suppliers in Korea, to reduce the price of supplied screens.

While LG Display has accepted the request due to its heavy dependence on revenue from Apple, Samsung Display is still in negotiations.

"Compared to Samsung Display, LG Display is at a relative disadvantage in the negotiations with Apple because the company is heavily dependent on sales to Apple, which limits its negotiating power. Therefore, LG Display was forced to accept the requests made by Apple," said an unnamed source to The Bell.

Samsung Display and LG Display are said to be the two main screen suppliers for the upcoming iPhone 17 series. Previously, Apple removed BOE (China) from the list of screen suppliers for iPhone 17 because it did not meet the standards.

The screen is one of the most expensive components, accounting for about 10% of the total cost of iPhone components. Reducing the price of the screen will help Apple significantly reduce production costs, partly offsetting the high import tax in the US.

Additionally, if prices in other markets remain the same, the move will also help increase profits per iPhone sold.

Leaked information shows that all versions of the iPhone 17, including the lowest version, will be equipped with OLED screens with a 120Hz refresh rate - this is the first time Apple has equipped high-end screens for the entire product line.

The source also revealed that if successful in negotiating a price reduction for screens, Apple will continue to ask other partners to reduce prices for components such as memory, batteries, etc.

Apple is facing a lot of pressure from the administration of President Donald Trump, who has urged Apple to bring iPhone manufacturing to the US, threatening to impose an additional 25% import tax if it does not.

However, CEO Tim Cook and market analysts have repeatedly asserted that iPhone production in the US is not feasible due to a shortage of skilled labor and a complete supply chain like in China or Asia.

Manufacturing iPhones in the US could push the price of the product up to $3,000, even higher than current import tariffs.

Source: https://dantri.com.vn/cong-nghe/apple-ep-doi-tac-giam-gia-linh-kien-de-doi-pho-muc-thue-nhap-khau-vao-my-20250721094632099.htm