Trump Tariffs: Even if it leads to some demand destruction …, S&P warning on smartphone and PC prices in the US

Smartphone and personal computer (PC) prices are expected to increase as manufacturers pass on higher costs from US tariffs to consumers, according to S&P Global Ratings. The agency predicts that even if demand decreases, companies will raise prices, particularly impacting the 45% of PC sales and the majority of smartphone sales driven by consumers.

‘We expect PC and phone makers will pass on the higher cost to customers even if it leads to some demand destruction, especially for consumers who make up 45 per cent of PC sales and most of smartphone sales,’ the global credit ratings agency said in a research note, seen by ETTelecom.