U.S. President Donald Trump’s recently imposed tariffs on a wide range of imports are set to have a major impact on global trade dynamics, with consumer goods like iPhones potentially facing substantial price hikes. Analysts warned on Thursday that, if Apple passes the increased costs onto consumers, iPhone prices could rise by 30% to 40%.
The majority of iPhones are manufactured in China, which has been hit with a steep 54% tariff. Should these tariffs remain in place, Apple (AAPL.O) will be faced with a tough decision: either absorb the additional costs or increase prices for customers. If the company opts to transfer these costs to consumers, the result could be a significant price spike for the tech giant’s flagship product.
On Thursday, Apple’s stock took a hit, closing down 9.3%, marking its worst performance since March 2020.
With more than 220 million iPhones sold globally each year, the price hike could affect Apple’s biggest markets—namely the United States, China, and Europe.
Currently, the base model of the iPhone 16 is priced at $799 in the U.S., but, according to analysts from Rosenblatt Securities, the cost could climb to $1,142, a 43% increase, if Apple decides to pass the tariff burden onto consumers.
The higher-end iPhone 16 Pro Max, which features a 6.9-inch display and 1 terabyte of storage, currently retails for $1,599. However, with the 43% tariff-induced price increase, the device could cost as much as $2,300.
During his first term, President Trump imposed tariffs on a broad spectrum of Chinese imports in an effort to encourage U.S. companies to move manufacturing operations either back to the U.S. or to neighboring countries like Mexico. Although Apple managed to secure exemptions and waivers for some products in the past, no such exemptions have been granted this time around.
The iPhone 16e, a more affordable model introduced in February and geared toward providing consumers access to Apple’s suite of artificial intelligence features, currently costs $599. A 43% price increase could push its cost to $856. Other Apple devices, such as the iPad and MacBook, may also see significant price increases due to the tariffs.
This shift in pricing is likely to have a ripple effect on Apple’s global sales, with many consumers potentially reconsidering their purchases depending on how steep the price hikes become. The iPhone remains one of the most important products in Apple’s portfolio, and any significant price changes could alter the company’s market dynamics moving forward.
