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Apple Faces Higher IPhone Production Costs With Trump Tariffs

Inside The New Apple Inc. Carnegie Library Store
Photographer: Anna Moneymaker/Bloomberg

Apple Inc. could see the production costs for its flagship iPhone rise 2-3% given the impact that trade tensions between the U.S. and China are having on input materials like lithium batteries, according to Wedbush analyst Daniel Ives.

Ives cautioned that the impact could easily get worse for Apple, which he described as the ``poster child'' for companies facing trade-related headwinds. The company relies on Chinese labor for the production of nearly all of its devices, and it derived nearly 20% of its 2018 sales from the Chinese market, according to data compiled by Bloomberg.