Will the iPhone 11 cost drop affect how much you actually pay?

The upcoming Apple iPhone 11 is one of the centers of attention of the tech community, being swarmed by all kinds of leaks, controversies, speculations. Adding to the list, a new report by JP Morgan that was picked by AppleInsider reveals that the company has managed to reduce the manufacturing cost of the iPhone 11 by up to 12 per cent compared to iPhone XS.

According to the firm, the price of materials for the iPhone 11 dropped between USD 30 and USD 50, bringing the total manufacturing cost of one unit to only USD 433.

But the firm claims that consumers won’t be able to reap the benefits of the reduced costs, as Apple will likely use the low costs to absorb another looming threat. Chinese electronic products will soon have a 10 per cent tariff, and since a vast majority of iPhones are manufactured in China, the tariff could hit big.

The report further adds that the 10 per cent tariff would have an impact of 8 per cent if Apple were to absorb the tariffs. However about two-thirds of the iPhones are sold outside the US and there are still no price cuts planned for the other regions outside the states.

While the whole matter is controversial down to its core, how much you will be affected by it depends on your loyalty to the brand and whether the iPhone 11 actually is worthy of the upgraded price tag it will likely come with.