This week President Donald Trump made good on his word to roll out sweeping tariffs on imports from China and elsewhere in the world. As a result of these tariffs, which impact every country in the Apple supply chain, the best iPhones could soon cost double what they do now, with analysts predicting prices ballooning by 43% or more.
Like many consumer goods, most of the 200 million iPhones Apple produces each year are still made in China, which was hit with a 54% tariff − the highest U.S. tariff on any country. It's part of a larger rollout of "reciprocal tariffs" that went into effect on April 2, or "Liberation Day" as President Trump is calling it.
While Apple was able to negotiate a tariff exemption during President Trump's first term, this time around, the administration has not issued an exemption. And consumers are most likely to feel the sting.
To compensate for the increased price of doing business, Apple would either have to eat the cost, pass it onto investors, or raise prices on its products. In a Reuters report published Friday, analysts from Rosenblatt Securities said Apple could increase iPhone and Apple Watch prices by 43%, iPad prices by 42%, and AirPods by 39% to offset the extra cost.
"Our quick math on Trump's tariff Liberation Day suggests this could blow up Apple, potentially costing the company up to $40 billion," Barton Crockett, analyst at Rosenblatt Securities, said in a note. "It's hard for us to imagine Trump blowing up an American icon...but this looks pretty tough."
iPhone price tag could skyrocket
If these price increases came to pass, the base iPhone 16 model would jump from $799 to as much as $1,142. Meanwhile, the premium iPhone 16 Pro Max with 1TB of storage, which currently retails for $1,599, could cost nearly $2,300 — assuming Apple passes on the full cost of the change to consumers.
Even Apple's entry-level iPhone 16e would jump from $599 to $850 for what's supposed to be a budget handset, making it more expensive than the current iPhone 16 price point.
Looking ahead, the iPhone 17 series would likely see price hikes as well. The iPhone 17 Pro Max, rumored to start at $1,199, could balloon to over $1,700. And for the option with 1TB of storage, that price could jump to $2,300.
Another respected technology analyst suggests that could even be a conservative estimate. Speaking on Yahoo Finance’s Morning Brief, Ives said the new tariffs could cause "every electronic to go up 40%-50% for consumers," with iPhones shooting up to as much as $3,500.
However, not everyone believes the situation is quite so dire. Counterpoint Research co-founder Neil Shah told Reuters Apple will likely raise prices at least 30% on average to offset import duties.
It remains to be seen whether Apple will be able to secure a tariff exemption as it did before or if it'll opt to offset import duties by raising prices on iPhones or any of its other products. But a sharp price hike would seriously dampen demand for Apple's smartphones.
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