Prices for Apple gadgets may rise after the transfer of production from China to other countries

Bloomberg reports that Apple gadgets may rise in price due to tense relations between China and the United States, the latter of which are trying in every possible way to restrain the technological development of the Asian country.

The publication notes that such actions are forcing companies to move their production outside of China to other countries. The overall supply chain can have a negative impact on the final cost of products. Now 80% of production partners are connected with China.

Production in China is not increasing, the ratio between India, Vietnam, Thailand and other Asian countries is changing with “cheap labor”.

At the same time, the infrastructure in India and Vietnam is less developed, and there are also interruptions in water and electricity. Because of this, Apple expects high costs.

However, Bloomberg experts are not entirely sure that the Cupertinos are raising prices for their gadgets:

Prices for Apple products could indeed rise to reflect the higher costs of supply chain migration. However, it is possible that such cost increases may not be fully reflected in the final prices, as it could hurt market demand.

— Steven Tseng of Bloomberg Intelligence

However, do not expect that China will not lose its reputation as the world’s main center of industrial production in the near future.

Suppliers, of course, agree to their presence there. Even Chinese companies such as Luxshare are currently building factories for their countries.

But at the same time, Chinese firms, making everything from displays and cases to circuit boards and batteries, are joining Apple’s supplier list. Semiconductors is a domestic area where China is underrepresented due to its expertise in memory and processing. [Bloomberg]