This is How Much iPhones Could Cost with US Tariffs

The recent wave of US tariffs targeting imports from China and Vietnam has put major electronics manufacturers like Apple in a tight spot — and it could soon hit consumers in the form of higher iPhone prices. High import tariffs, 54% on goods from China and 26% on imports from India, directly affect Apple’s global supply chain, as the company still assembles most iPhones in China.

Cost to Make iPhones

A breakdown from The Wall Street Journal, based on data from iFixit and TechInsights, estimates that a 256 GB iPhone 16 Pro currently costs Apple around $580 to build, including parts and assembly. The most expensive components include the rear camera system ($126.95), the A18 Pro chip ($90.85), and the display ($37.97). With the new 54% tariff, the cost to Apple could climb to about $847, a $267 increase, and this is before any profit margins.

Surge in Retail Prices?

Apple currently sells the 256 GB iPhone 16 Pro in the US for $1,100. Although the new tariff isn’t applied to the retail price but to the manufacturing cost, a jump in Apple’s internal expenses puts pressure on profit margins. Historically, Apple has absorbed small tariff increases, such as the earlier 10% duty, without adjusting prices. However, with the new rate more than five times higher, Apple is unlikely to take the full hit alone.

Even if Apple decides to absorb 50% of the price hike, the retail price could still go upward of $1230.

How Apple is Responding

To prepare, Apple has been stockpiling inventory in the US, hoping to delay price hikes at least until the iPhone 17’s launch in September. Additionally, the company has accelerated its shift toward production in India and is expanding operations in Brazil. But even with this diversification, Apple still manufactures the bulk of iPhones in China, which keeps its exposure to tariffs significant.