iPhone price increase could soon hit consumers as new US tariffs on Chinese imports threaten to raise costs by up to 40%. Analysts predict that if Apple shifts the additional expenses onto buyers, iPhone prices may surge significantly.
Apple sells around 220 million iPhones annually, with the US, China, and Europe being its key markets. A significant portion of Apple’s iPhones are still manufactured in China. With the newly imposed tariffs, the import duty on products coming from China to the US has now reached as high as 54%.
According to analysts at Rosenblatt Securities, the base model of the iPhone 16 currently starts at $799 in the US. With the new tariffs, the price could surge to $1,142. Similarly, the iPhone 16 Pro Max, which now costs $1,599, might see its price jump to $2,300 if Apple shifts 43% of the tariff cost onto consumers.
Trump has previously imposed tariffs on Chinese products to encourage manufacturing within the US or relocate it to nearby countries like Mexico. However, Apple managed to secure exemptions for some of its products during that period. This time, no such exemptions have been granted.
Potential $40 Billion Loss for Apple
Rosenblatt Securities analyst Barton Crockett stated, “We initially assumed Apple would receive special exemptions as a US-based company, but the reality has been quite the opposite. Our estimates indicate that Trump’s new tariffs could result in a $40 billion loss for Apple. However, we still believe that negotiations between Apple, China, and the White House could lead to a resolution.”
Apple has not officially commented on whether the new tariffs will lead to price increases. However, most customers purchase iPhones through carrier installment plans over two to three years.
Market analysts have also noted a decline in iPhone sales recently. Experts suggest that Apple’s new AI-based features have not been compelling enough to attract customers.
CFRA Research analyst Angelo Zino believes Apple will struggle to raise prices by more than 5-10%. He stated, “We don’t expect Apple to implement significant price hikes, at least until fall this year when the iPhone 17 is expected to launch.”
Apple has already moved part of its production to Vietnam and India, but those countries are also subject to Trump’s tariffs. Vietnam faces a 46% tariff, while India has a 26% tariff—both lower than China’s rate.
According to Neil Shah, co-founder of Counterpoint Research, Apple may need to raise its product prices by an average of 30% to offset tariff costs. This could lead to a drop in demand for iPhones, giving Samsung a competitive advantage. Since South Korea is subject to lower tariffs, Samsung could emerge as the preferred choice for consumers looking for high-end smartphones.
The situation remains uncertain, and it is yet to be seen how Apple will navigate these trade challenges in the coming months.