iPhones Likely to Become Even More Expensive After US Tariffs

Global trade faces a substantial shift as a result of US President Donald Trump’s new tariffs, with consumer goods like iPhones poised for notable price hikes.

Experts predict a potential 30% to 40% increase in the iPhone’s retail cost should Apple choose to transfer the tariff burden to buyers. Given that the majority of iPhones are produced in China, a nation now subject to a 54% tariff, Apple confronts a critical decision: should it bear the mounting expenses or implement price hikes for its customer base?

Consumers could face significantly higher prices for Apple’s latest smartphones, according to projections from Rosenblatt Securities analysts. The base model iPhone 16, originally selling for $799, might jump to $1,142, representing a substantial 43% surge. Similarly, the more expensive iPhone 16 Pro Max, currently priced at $1,599, could climb to almost $2,300 with the same 43% increase, reaching price levels of foldable phones, such as the Galaxy Z Fold.

Rosenblatt Securities analysts indicate that these potential price hikes across Apple’s product line are a consequence of the company needing to offset an estimated $39.5 billion in tariff expenses.

Apple, a company with significant manufacturing operations in China, may have to increase the prices of several popular products. Reports suggest potential price hikes of 43% for Apple Watches, 42% for iPads, and 39% for both AirPods and Mac computers.

The news of these possible tariffs had an immediate negative effect on the company’s financial performance, with Apple’s stock price falling by 9.3% on Thursday, its largest single-day drop since March 2020. Selling over 220 million iPhones each year, Apple now faces considerable challenges in key markets such as the United States, China, and Europe.