Apple may be forced to hike the price of its iPhone as a result of the global trade tariffs announced by President Donald Trump.
For years, Apple has avoided hiking iPhone prices in the U.S. and kept the costs relatively stable.
However, reports suggest that Apple may have to significantly raise the prices of its iPhones to offset the effect of President Trump’s tariffs announced on Wednesday.
Most iPhones are still made in China, which was hit with 54% tariffs under the new regime. According to a report by Reuters, if those tariffs stay in place, Apple has a tough choice: absorb the extra expense or pass it on to customers.
The cheapest iPhone 16 model was launched in the U.S. with a sticker price of $799. However, analysts at Rosenblatt Securities estimate the price could rise to $1,142 — a 43% increase — if Apple passes the full cost of the tariff onto buyers.
Higher-end models could see even steeper increases. The iPhone 16 Pro Max, for example, which costs $1,599 today, could jump to nearly $2,300 under the same conditions.
In his first term as president, Trump imposed tariffs on a wide range of Chinese imports to pressure U.S. companies to bring manufacturing either back to the United States or to nearby countries such as Mexico. Back then, Apple was able to secure exemptions or waivers for several products. This time, Trump has so far not granted any such exemptions.
Mark Gurman has also weighed in on the possibility of iPhone price hikes in his latest Power On newsletter for Bloomberg.
“Assuming the levies are fully in place by April 9 as planned, Apple will have a big decision to make: Will it eat the costs of the tariffs, push suppliers to reduce prices, pass on the expense to customers, or make further supply chain adjustments? My bet is that Apple will do a combination of all four,” Gurman writes.
While some analysts have predicted that iPhone models could rise to as much as $3,400, Gurman thinks those estimates might be exaggerated.
He suggests that Apple will likely respond to the tariffs in several ways at once: by pressuring suppliers to lower their prices, absorbing a small portion of the costs, possibly adjusting retail prices, and changing its supply chain to reduce reliance on production in China.
Interestingly, Gurman also points out that Apple has been building up its iPhone inventory in the U.S. ahead of the tariffs since devices already in the country won’t be affected.
This move could allow Apple to delay price increases until its next iPhone launch in September. However, Gurman warns that waiting too long might backfire, as raising prices at launch could shift public attention away from the new product features and onto the cost instead.
PetaPixel has already reported on how tariffs may affect camera prices.
Image credits: Header photo licensed via Depositphotos.
