The tariffs implemented in the US overnight on Wednesday are expected to raise the prices of new smartphones. However, opting to repair an old or damaged device to save money may not necessarily result in a lower bill.
“Unfortunately, I anticipate having to increase my prices for parts,” explained Elizabeth Chamberlain, sustainability director at IFIXIT, a device repair company. “While we are actively seeking domestically-sourced parts, even with higher prices, repairs are still more cost-effective than purchasing new devices.”
Donald Trump’s tariffs could impact smartphone repair costs due to the global supply chain for device components. Many parts for popular Apple and Samsung mobile phones are manufactured outside the US. iPhones are primarily made in China, and companies exporting to the US face over 100% customs duties. India, where Apple and Google also have production facilities, is subject to a 26% tariff. Samsung’s supply chain is mainly in South Korea and could see a 25% tariff if agreements are not reached with the Trump administration.
The tariffs could drive up the demand for phone repairs as individual parts remain more affordable than buying new devices, even with higher prices. Customs duties could add nearly $300 to the price of the latest iPhone.
“It’s too early to determine if the tariff news is leading to increased repair demand, but it makes more sense than ever to repair what we have,” Chamberlain noted. “I believe tariffs could also stimulate demand for renovations and local parts sourcing in the repair industry.”
Increase in Parts Prices
Both large and small repair shops are bracing for higher prices for imported parts. A Brooklyn shop manager, who preferred not to be named, revealed that a national repair chain location is anticipating a 20% price hike for many necessary repair parts.
Dan Fernando, owner of Tecquecia, an independent repair shop in Philadelphia, has already seen fluctuations in prices for components like specific hard drives used for computer repairs. Fernando sources parts from a supplier called MobilesEntrix, which imports parts to the US.
“For phone screen replacements, we charge a $50 flat fee plus the screen cost,” Fernando explained. “Customers may now expect to pay between $80 and $90 for a screen replacement, with the new tariffs potentially resulting in a 50% increase.”
Fernando is also exploring cheaper repair options, stating, “Some people buy parts from eBay or Amazon which I don’t use due to quality concerns.”
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The Attraction of Second-Hand Devices
With the rising costs of new devices and repairs, the second-hand device market, such as Swappa, offers a viable alternative for consumers. Swappa’s top-selling devices currently include the iPhone 13 and 14, according to Ben Edwards, the site’s founder.
“If tariffs persist and drive up new device prices further, I believe many buyers will turn to Swappa and similar platforms,” Edwards predicted. “The latest generation may not offer enough technical advantages to justify the increased costs.”
However, the prices of refurbished devices on Swappa could also rise as sellers adjust to the higher costs of new devices. Edwards explained that market dynamics determine prices on Swappa, with individual sellers setting their own prices.
“Ultimately, demand dictates prices,” Edwards highlighted. “In the Swappa marketplace, sellers have the freedom to set prices based on supply and demand.”
For consumers in the market for second-hand devices, Edwards advised, “Don’t wait.”
Source: www.theguardian.com
