US President Donald Trump’s global tariffs are expected to have a major impact on global trade, especially on consumer goods like iPhones.
Analysts have warned that the price of an iPhone could increase by 30% to 40% if Apple chooses to pass the higher costs onto consumers. Since most iPhones are made in China, which is subject to a 54% tariff, Apple will face a decision on whether to absorb the additional expenses or raise prices.
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For instance, the base iPhone 16, which was originally priced at $799, could rise to $1,142, marking a 43% increase according to analysts from Rosenblatt Securities. The iPhone 16 Pro Max, priced at $1,599, could see a similar 43% rise, potentially pushing its price to nearly $2,300.
Apple is expected to raise prices across various products to recover an estimated $39.5 billion in tariff costs. Products such as Apple Watches, iPads, AirPods, and Mac computers could also see price hikes, with increases of 43%, 42%, and 39%, respectively.
As a result of the tariff news, Apple’s stock dropped by 9.3%, its worst performance since March 2020. With over 220 million iPhones sold annually, the company faces significant challenges in key markets like the US, China, and Europe.
