As the United States grapples with potentially crippling tariffs, Apple users may soon dish out over $2,000 for new iPhones.
A sweeping set of tariffs imposed by Donald Trump on global trade could increase the price of consumer goods like iPhones by 30% to 40%, analysts warned. Most iPhones are made in China, which faces a 54% tariff, leaving Apple with a tough decision: absorb the costs or pass them on to customers.
Shares of Apple dropped 9.3% on Thursday, its worst day since March 2020. Analysts at Rosenblatt Securities estimate that the iPhone 16, currently priced at $799, could rise to $1,142 due to a 43% tariff increase. Even the higher-end iPhone 16 Pro Max could jump to nearly $2,300 if prices are passed on to consumers.
Barton Crockett of Rosenblatt noted that “this whole China tariff thing is playing out right now completely contrary to our expectation that American icon Apple would be kid-gloved, like last time.” Meanwhile, Apple’s new iPhone 16e, priced at $599, could rise to $856 if tariffs increase by 43%.
While Apple has shifted some production to India and Vietnam, these countries aren’t immune to tariffs either. Counterpoint Research’s Neil Shah suggests that Apple may need to raise prices by at least 30% to offset these import duties. With consumer demand already stagnating, analysts fear that a sharp price hike could hurt Apple’s bottom line, giving competitors like Samsung an advantage.
