Your next iPhone may cost way more soon. Sweeping tariffs imposed by U.S. President Donald Trump on global trade, particularly targeting China where most iPhones are made, could force Apple to hike prices by 30% to 40%, analysts warned Thursday.
The tariffs, including a 54% levy on Chinese goods, present Apple with a difficult choice: absorb the added extra cost or pass it on to consumers. Investors reacted sharply, sending Apple’s stock plummeting almost 10%– its worst day since March 2020.
Apple, which sells over 220 million iPhones annually across major markets like the U.S., China, and Europe, faces a stark reality. Rosenblatt Securities analysts project that the cheapest iPhone 16, launched at $799, could jump to around $1,142 – a 43% increase – if Apple fully passes on the tariff costs. The high-end iPhone 16 Pro Max, currently priced at $1599, could soar to nearly $2300 under the same scenario.
While Trump previously granted Apple exemptions during his first term’s China tariffs, aimed at pushing U.S. companies to relocate manufacturing, no such exemptions have been announced this time. Barton Crockett, a Rosenblatt Securities analyst, noted the unexpected shift, stating, “This whole China tariff thing is playing out right now completely contrary to our expectation that American icon Apple would be kid-gloved, like last time.”
The more affordable iPhone 16e, priced at $599, could reach $856 with a similar price hike. Other Apple devices are also likely to see increases. While many consumers pay for iPhones through multi-year carrier contracts, the underlying cost pressure remains.
Adding to Apple’s challenges, some analysts point to floundering iPhone sales in key markets, suggesting that new AI features haven’t provided a strong enough incentive for upgrades.
