By Tae Kim
Tech hardware prices will go higher -- much, much higher -- because of the Trump tariffs, new numbers from New Street Research show.
The increases, as calculated by analyst Pierre Ferragu: Computers: 28% to 35%; high-end smartphones: 21% to 26%; computer servers and networking devices: 25% to 31%; and telecom equipment: 9% to 12%.
Pierre Ferragu assessed the impact of the tariffs using manufacturing origin, potential additional costs, and how much can be passed on to the customer.
Last week, President Donald Trump announced that additional tariff rates on dozens of countries -- 34% on China, for example, 46% on Vietnam, and 26% on India -- would go into effect on Wednesday.
Asia produces most of the tech products. Apple, in particular, relies on the contract manufacturer Foxconn to make the vast majority of its iPhones in China.
And Japanese game maker Nintendo has delayed accepting U.S. preorders of its highly anticipated Switch 2 console -- the company manufactures its consoles across Asia -- because of market uncertainty over the tariffs. Preorders had been scheduled to be accepted starting on Wednesday. There is no new date, according to the company.
In afternoon trading on Monday, Apple shares were down 5.7%. Nintendo's American depositary receipts were up 0.3%. The Nasdaq Composite index was down 0.9%
Write to Tae Kim at tae.kim@barrons.com
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April 07, 2025 13:35 ET (17:35 GMT)
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