US President Donald Trump’s new tariffs are set to impact global trade, especially for consumer products like iPhones. Analysts warn that if Apple passes these costs to buyers, an iPhone could increase by 30% to 40%. Most iPhones are manufactured in China, where they now face a hefty 54% tariff. Apple will need to decide whether to absorb these costs or raise consumer prices.
For instance, the entry-level iPhone 16, priced at $799, could jump to $1,142. This represents a staggering 43% increase according to estimates from Rosenblatt Securities. Meanwhile, the premium iPhone 16 Pro Max currently retails for $1,599. If prices rise similarly, it could reach nearly $2,300.
Additionally, other Apple products may see price hikes due to tariff costs. Analysts estimate a 43% increase for Apple Watches, a 42% rise for iPads, and a 39% jump for AirPods and Mac computers. Overall, Apple could face approximately $39.5 billion in tariff costs affecting its pricing strategy across various products.
As a result of this tariff news, Apple’s stock dropped by 9.3% on Thursday. This decline marks Apple’s worst performance since March 2020. With over 220 million iPhones sold every year, Apple faces intense pressure in important markets, including the United States, China, and Europe.