Nigerian Phone Vendors Fear Business Collapse

Keep up with the latest news and be part of our weekly giveaways and airtime sharing; follow our WhatsApp channel for more updates. Click to Follow us

Phone vendors in Nigeria are expressing concerns over the 14% tariff hike imposed by US President Donald Trump, fearing it will hinder growth and potentially lead to business closures. The vendors are already struggling due to the naira’s depreciation, inflation, and foreign exchange market volatility.

For further information, read more details here

“We are saddened by the development,” said Ademola Olaifa, Public Relations Manager of the Computer and Allied Products Dealers Association of Nigeria. “The matter has been compounded because of the country’s current economic situation.”

A tech analyst warned that Trump’s global tariffs could increase the price of an Apple iPhone to around $3,500 if manufactured in the US, more than three times the current price of $1,000. “You build that (supply chain) in the US with a fab in West Virginia and New Jersey. They’ll be $3,500 iPhones,” the analyst said.

The impact on Apple would be significant, with estimates suggesting it would cost $30 billion and at least three years to move 10% of its supply chain back to the US. This could severely impact margins and product timelines. Apple, which relies heavily on Asian manufacturing hubs, has seen its stock fall by 25% since Trump’s inauguration due to concerns over cost inflation, supply chain disruption, and a potential slowdown in global demand.

Approximately 90% of iPhones are assembled in China, with key components sourced from Taiwan and South Korea. In response, Apple has begun diversifying production, announcing a $500 billion investment in US operations in 2024 to reduce exposure to China. India and Brazil have emerged as alternative manufacturing hubs, offering more stability despite tariffs of 26% and 10%, respectively.

Please don’t forget to “Allow the notification” so you will be the first to get our gist when we publish it. 
Drop your comment in the section below, and don’t forget to share the post