Global trade is undergoing a significant transformation due to the new tariffs imposed by US President Donald Trump, which are expected to lead to considerable price hikes for consumer products like iPhones.
Experts estimate that if Apple decides to pass the tariff costs onto consumers, the retail price of the iPhone could rise by 30% to 40%. With most iPhones manufactured in China, which is now facing a 54% tariff, Apple is at a crossroads: should it absorb the rising costs or raise prices for its customers?
According to analysts from Rosenblatt Securities, consumers may see steep price increases for Apple’s newest smartphones. The base model iPhone 16, currently priced at $799, could soar to $1,142, marking a significant 43% increase. Likewise, the iPhone 16 Pro Max, which retails for $1,599, might escalate to nearly $2,300, reaching price points comparable to foldable devices like the Galaxy Z Fold.
The analysts from Rosenblatt Securities suggest that these anticipated price hikes across Apple’s range of products stem from the need to cover an estimated $39.5 billion in tariff costs.
Given its extensive manufacturing presence in China, Apple may be compelled to raise prices on several of its popular items. Reports indicate potential increases of 43% for Apple Watches, 42% for iPads, and 39% for both AirPods and Mac computers.
The announcement of these potential tariffs has already had a negative impact on Apple’s financial outlook, with the company’s stock plummeting by 9.3% on Thursday, marking its largest single-day decline since March 2020. As Apple sells over 220 million iPhones annually, it now faces significant hurdles in major markets like the United States, China, and Europe.
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