3 min read
In a significant move with wide-reaching implications for consumers, iPhone prices are expected to rise substantially following U.S. President Donald Trump’s imposition of broad tariffs on a range of imported goods, particularly electronics from China.
Rosenblatt Securities projects that an initial $799 iPhone 16 model will reach $1,142 due to new price adjustments. American consumers might need to pay nearly $2,300 for the $1,599 iPhone 16 Pro Max. Apple plans to increase prices between 39% and 43% for all its product line including iPads, Apple Watches, AirPods and Mac computers.
An 9.3% decline in Apple’s stock value emerged as the worst one-day market performance since March 2020. The recent tariff announcement follows tricky times for Apple since it released its iPhones with AI-powered features in unstable global markets leading to reduced sales in regions including U.S. Europe and China.
Apple maintains a strong manufacturing dependency on China even though it transferred part of its production capacity to Vietnam and India. The new policy imposed tariffs of 46% in Vietnam and 26% in India along with China while these locations served as alternate manufacturing bases for Apple.
“This whole China tariff thing is playing out completely contrary to our expectation that an American icon like Apple would be kid-gloved, like last time,” said Barton Crockett, analyst at Rosenblatt Securities. The firm estimates the tariffs could cost Apple up to $40 billion, putting enormous pressure on the company’s pricing and profitability.
Equity analysts predict that although Apple might initially pay some costs by themselves, they will increase prices when the iPhone 17 launches this fall. Research analyst Angelo Zino from CFRA Research predicts Apple will encounter difficulties in passing more than 10% of tariff costs before this year ends.
The increased pricing pressure could ultimately allow Samsung and other opponents with reduced import tariffs to gain market advantage in the American sector. Apple will increase its negotiation intensity with Chinese authorities and U.S. officials through the upcoming months.
Apple has not yet issued an official response to the new tariffs. Although carrier payment plans may reduce the immediate impact for consumers, continued tariffs could lead to price increases across Apple’s entire product range.
