Cover image via Tengku Zafrul (Facebook)
The price of iPhones could soar to that of a car if the US continues to raise its retaliatory tariffs, said Investment, Trade, and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz
In a video posted on Facebook, Tengku Zafrul warned that tariffs as high as 145% could push the price of an iPhone — which currently costs around USD549.73 (RM2,424) to produce — to nearly USD1,400 (RM6,174). If manufactured entirely in the US, the cost could climb even higher to USD3,500 (RM16,000).
"Once prices go up in the US, the rest of the world will feel the impact too. This is because iPhone prices globally are benchmarked against the US," he explained in the video, which has since gone viral.
The minister explained that an iPhone's components are sourced globally: chips from Taiwan, screens from South Korea, batteries from China, modems and memory from the US, storage from Japan, and cameras from multiple countries — with final assembly taking place in China.
However, Tengku Zafrul noted that the US recently granted exemptions on tariffs for smartphone and computer components, particularly those imported from China — a move that offers temporary relief to consumers.
"Our iPhone fans can breathe easy for now, but no one knows how long this exemption will last — Trump could reverse it at any time," he said.
Image via Tengku Zafrul (Facebook)
According to reports, if the tariffs persist, Apple will face a difficult decision: to absorb the additional costs or pass them on to consumers
Tengku Zafrul also highlighted Malaysia's critical role in the global supply chain, especially in semiconductor exports. During the COVID-19 pandemic, US automaker Ford had to suspend operations due to a chip shortage traced back to Malaysia, he said.
"A chip may be small, but without it, even a giant factory can't operate. No country is truly self-sufficient — everyone depends on each other," he added.
"Tariffs are like congestion — everything gets stuck, from producers to consumers and investors. Open trade is crucial, especially for a trading nation like Malaysia."
