Investment, Trade and Industry Minister Datuk Seri Tengku Zafrul Aziz has warned that continued tariff hikes by the United States could cause the price of an iPhone to skyrocket — potentially reaching the cost of a car.
In a recent social media video, Tengku Zafrul broke down the true global nature of iPhone production — highlighting how its parts are sourced from all over the world.
A product of vast international supply chain
From Taiwanese chips and Korean screens to Chinese batteries and American modem and memory, Japanese storage, every iPhone is a product of a vast international supply chain, with final assembly completed in China.
With the current cost of producing an iPhone estimated at USD 549.73 (around RM2,424), he warned that a 145% tariff could see the retail price jump to USD 1,400 (RM6,174).
Worse, if the iPhone were entirely made in the US, the price could balloon to as much as USD 3,500, or approximately RM16,000.
“Prices in other countries won’t be spared either.
iPhone pricing in global markets typically follows US trends — meaning Malaysian consumers could be hit too,” he added.
Trump could raise tariffs again at any time
Tengku Zafrul noted that while the US recently announced a temporary exemption on tariffs for smartphones, computer screens, chips, and other electronic components, it’s uncertain how long this will last.
Trump could raise tariffs again at any time,” he said, hinting at the unpredictability surrounding US trade policy.
Beyond smartphones, Tengku Zafrul used the opportunity to underline Malaysia’s significance in the global supply chain, especially as a major semiconductor exporter.
He recalled how, during the COVID-19 pandemic, American automaker Ford had to shut down operations due to a lack of chips from Malaysia.
“A single missing component like a chip can bring an entire factory to a halt.
That’s how interconnected the global economy is. No country can survive in isolation.”
iPhone prices could climb by 43%
He likened the effect of high tariffs to a traffic jam — a burden not just for manufacturers, but for consumers and investors as well.
Open trade isn’t just a policy — it’s a lifeline, particularly for countries like Malaysia that rely heavily on exports,” he stressed.
Recent international reports echo his concerns, suggesting iPhone prices could climb by 30% to 43% if tariffs continue. Apple would then be faced with a tough decision: absorb the costs or shift the burden onto customers.
For now, the temporary tariff exemption is keeping prices stable — but for how long, remains uncertain.
Watch the full video here:
