Tariffsthat took effect in the US at midnight on Wednesday are expected to make buying new smartphones more expensive. But opting to fix an old or damaged device as a way to save money may not avoid a higher bill.“We do expect that we’ll have to increase our own parts prices some, too, unfortunately,” said Elizabeth Chamberlain, the director of sustainability at the device repair company iFixit. “We’re actively looking for sources of harvested parts from within the US. Even with higher prices on parts, however, repairs will still be much more economical than buying new.”Donald Trump’s tariffs are likely to drive up the cost of smartphone repairs because of the globalized supply chain that produces the devices’ components. The vast majority of parts for popular phones from Apple and Samsung are produced outside of the US. iPhones are primarily manufactured and assembled in China, where businesses that export to the US are bracing for a tariff of over 100%. India, where Apple has shifted some of its production and where Google in part manufactures its Pixel line of phones, is facing a 26% tariff. Samsung’s supply chain is largely based in South Korea, which may see a 25% tariff if the government isn’t able to reach a deal with Trump’s administration. The companies did not respond to requests for comment on potential price increases.Trump says ‘I know what I’m doing’ before stepping back from global tariffsRead moreTariffs may increase demand for phone repairs because a single part, even at a higher price, will remain cheaper than a complete device. The tariffs could drive up the final price of the latest iPhone by nearly $300, according to theWall Street Journal, which makes repairing the devices people already own a more viable alternative, Chamberlain said.“It’s a bit too soon to say whether the tariff news is driving more repair demand, but fixing what we’ve got makes more sense than ever, now that buying new will be more expensive,” she said. “We expect the tariffs might also drive demand for refurbishing and parts harvesting. The repair world is full of business models that don’t rely on importing stuff from overseas.”Increasing price of partsRepair shops big and small are preparing for the prices of imported parts to go up. A manager of a Brooklyn location of a national repair chain, who asked not to be named because he was not authorized to speak to the press, said that his business is anticipating a 20% increase for many of the parts required to repair devices.Dan Fernando, the owner and operator of Technesia, an independent repair shop run out of his Philadelphia home, said he is already seeing some price fluctuations for parts like a particular hard drive he often uses to repair computers. Within the past few days, Fernando has seen the price of the one-terabyte drive rise by $10, an increase that will be passed down to his customers, he said. The electronics repairman charges a flat service fee for each repair, and customers are expected to pay for the cost of a part if they need to get a replacement, a common business model in electronics repair. Fernando sources the parts from a phone repair supplier called MobileSentrix, which imports parts to the US from China and other countries.“For a screen replacement on phones, I charge $50 flat for the service plus the cost of the screen,” he said. “The customer can expect to pay $80 to $90 for a screen replacement. With the new tariff increase, it will maybe cost 50% more.”Fernando is also concerned customers will turn to shops that offer cheaper repairs that may begin to use lower grade parts to maintain their profit margins, leaving his business in the lurch. “Some people get it from eBay or Amazon. I don’t use it because I don’t know their quality,” he said.skip past newsletter promotionSign up toTechScapeFree weekly newsletterA weekly dive in to how technology is shaping our livesEnter your email addressSign upPrivacy Notice:Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see ourPrivacy Policy. We use Google reCaptcha to protect our website and the GooglePrivacy PolicyandTerms of Serviceapply.after newsletter promotionAppeal of secondhand devicesWith both new devices and repairs becoming pricier, secondhand device marketplaces like Swappa present a third option to concerned customers. The biggest sellers on sites for pre-owned electronics are phones two or three generations behind the latest. At the moment, the best selling devices on Swappa are the iPhones 13 and 14, according to the site’s founder and CEO, Ben Edwards.“My expectation is that, if these tariffs do remain in place and we do see even further rise in cost of new devices, I think that’ll really drive a lot of new buyers to Swappa and similar sites,” said Edwards. “I’m not sure there’s enough technological advantage with the newest generation.”But even Swappa may see prices on refurbished devices increase. The site allows sellers – which include both individuals and companies – to set their own prices and provides them with data on previous sales and current demand. When the cost of the newest smartphones go up, sellers often raise the prices of these used devices in response, Edwards said.“Essentially, demand is ultimately going to kind of dictate the price,” Edwards said. “On Swappa, because of the nature of our marketplace, where we’ve got a lot of different sellers who can each set their price independently, it’s really just market dynamics that are going to dictate the price. If somebody comes in and prices aggressively, they’re going to sell more quickly and that’ll reflect itself in the data.”In other words, if a consumer is in the market to buy a used device, Edwards advised: “I wouldn’t wait.”
Why you can’t just repair your phone in the US to avoid Trump tariffs
TruthLens AI Suggested Headline:
"US Tariffs Expected to Raise Smartphone Repair Costs Amidst Higher Device Prices"
The Guardian
8.5
TruthLens AI Summary
The recent tariffs implemented in the United States are expected to increase the prices of new smartphones significantly, making repairs of older devices a more appealing option for consumers. Elizabeth Chamberlain, director of sustainability at iFixit, noted that while the cost of repair parts may also rise due to these tariffs, repairs will still be more economical compared to purchasing new devices. The tariffs, which impose hefty fees on components manufactured abroad, are particularly impactful for popular brands like Apple and Samsung, whose supply chains are heavily reliant on overseas production. For instance, iPhones are primarily produced in China, which faces a tariff exceeding 100%, while other countries like India and South Korea are subject to tariffs of 26% and 25%, respectively. This situation may lead to a rise in demand for repairs as consumers seek to avoid the high costs associated with new smartphones, which could increase by nearly $300 as reported by the Wall Street Journal.
As repair costs are expected to rise, repair shops are bracing for the impact of increased prices on imported parts. A manager from a repair chain in Brooklyn anticipates a 20% increase in part prices, while independent repair shop owner Dan Fernando has already observed a $10 price hike on a commonly used hard drive. This increase will likely be passed to customers, meaning that repair costs could rise significantly, such as a potential 50% increase for screen replacements. Despite these challenges, some consumers may turn to lower-priced repair options, potentially sacrificing quality for affordability. Additionally, the rising costs of new devices and repairs may push more consumers towards secondhand marketplaces like Swappa, where older models are expected to see increased demand and prices. Sellers on such platforms will likely adjust their pricing in response to market dynamics, making it crucial for buyers to act quickly if they are considering purchasing used devices.
TruthLens AI Analysis
The article provides insight into the implications of new tariffs imposed by the U.S. on smartphones and the unexpected consequences for the device repair market. It highlights the complexities of a global supply chain and how these tariffs will impact both new and repaired devices, ultimately leading to an increase in repair demand.
Impact of Tariffs on Repair Costs
There is a clear expectation that the tariffs will raise the prices of smartphone components, which in turn may increase the cost of repairs. Elizabeth Chamberlain from iFixit suggests that while repairs might still be cheaper than purchasing new devices, businesses like hers will also have to adjust prices due to the tariffs. This presents a paradox where the costs of repairing devices might rise even as consumers are looking for cost-saving alternatives.
Consumer Behavior Shift
The article suggests that the rising costs of new phones due to tariffs may lead consumers to opt for repairs instead. This shift in consumer behavior could benefit the repair industry, as fixing existing devices becomes a financially viable option. Chamberlain’s comments indicate that there may already be a trend towards increased demand for repairs, although it's still early to quantify this effect.
Political Context and Public Perception
The article indirectly comments on the administration's trade policies and their impact on everyday consumers. By focusing on how tariffs affect personal technology, it brings to light broader economic issues that could resonate with voters concerned about rising costs. The narrative created by the article could elicit frustration toward the government’s trade policies, positioning the tariffs as a burden on average consumers.
Potential Economic Ramifications
The anticipated price increases for new smartphones could have wider implications for the economy, particularly in consumer electronics. If consumers shift towards repairs rather than purchasing new devices, we might see a slowdown in sales for major manufacturers like Apple and Samsung. This could affect their stock prices and overall market trends.
Target Audience
This article seems to appeal to a broad audience, including consumers concerned about rising prices, tech enthusiasts, and individuals interested in sustainability and repair culture. It emphasizes the economic rationale behind repairing devices, which might resonate with environmentally conscious consumers.
Market Influence
The news could influence stock prices in the technology sector, particularly for companies involved in smartphone manufacturing and repair services. Investors may react to the expected price increases and shifts in consumer behavior, which could inform trading strategies.
Geopolitical Considerations
This article touches on the broader context of U.S. trade policies and their impact on global supply chains. The tariffs represent a significant economic strategy that may alter relationships with countries like China and South Korea. The effects of these tariffs could have long-term implications on international trade dynamics. The analysis suggests that the article is based on factual information regarding tariffs and their implications, but it does employ a narrative that could evoke emotional responses regarding economic hardship and governmental policy failures. The language used is straightforward, focusing on the economic ramifications rather than sensationalizing the issue. In conclusion, the article is reliable in its assessment of the situation, as it presents a balanced view of the potential impacts of tariffs on both consumers and the repair industry. The overall message encourages readers to consider the implications of trade policies on their purchasing power and choices.