A $2,300 Apple iPhone? Trump Tariffs Could Make that Happen

US President Donald Trump imposed a sequence of sweeping tariffs on international locations all over the world that would drastically alter the panorama of world commerce, and client items like iPhones could possibly be among the many hardest hit, analysts mentioned on Thursday, with will increase of 30 p.c to 40 p.c if the corporate had been to move on the associated fee to shoppers. 

Most iPhones are nonetheless made in China, which was hit with a 54 p.c tariff. If these levies persist, Apple has a tricky selection: take in the additional expense or move it on to clients.

Shares of the corporate closed down 9.3 p.c on Thursday, hitting their worst day since March 2020.

Apple sells greater than 220 million iPhones a yr; its greatest markets embody the United States, China and Europe. 

The most cost-effective iPhone 16 mannequin was launched within the US with a sticker value of $799 (roughly Rs. 68,084), however might price as a lot as $1,142 (roughly Rs. 97,312), per calculations primarily based on projections from analysts at Rosenblatt Securities, who say the associated fee might rise by 43 percent- if Apple is ready to move that on to shoppers.

A costlier iPhone 16 Pro Max, with a 6.9-inch show and one terabyte of storage, which at the moment retails at $1,599 (roughly Rs. 1,36,254), might price practically $2,300 (roughly Rs. 1,95,988) if a 43 p.c enhance had been to move to shoppers.

Trump imposed tariffs on a variety of Chinese imports in his first time period as president to strain US firms to deliver manufacturing both again to the United States or to close by international locations akin to Mexico, however Apple secured exemptions or waivers for a number of merchandise. This time, he has not but granted any exemptions.

“This entire China tariff factor is enjoying out proper now utterly opposite to our expectation that American icon Apple can be kid-gloved, like final time,” Barton Crockett, analyst at Rosenblatt Securities, mentioned in a word.

The iPhone 16e, launched in February as a less expensive entry level for Apple’s suite of artificial-intelligence options, prices $599 (roughly Rs. 51,042). A 43 p.c value hike might push that price to $856 (roughly Rs. 72,940). Prices of different Apple units might bounce as effectively. 

Apple didn’t instantly reply to a request for remark. Many clients pay for his or her telephones over a interval of two or three years by means of contracts with their mobile suppliers.

However, different analysts famous that iPhone gross sales have been floundering within the firm’s main markets, as Apple Intelligence, a collection of options that helps summarise notifications, rewrite emails and provides customers entry to ChatGPT, has didn’t enthuse consumers. 

Expert evaluations have recommended that the options, whereas modern, don’t present sufficient of a compelling purpose to justify upgrading to newer fashions. 

The stagnation in demand might put further strain on Apple’s backside line, particularly if prices rise resulting from tariffs.

Angelo Zino, fairness analyst at CFRA Research, mentioned the corporate may have a tricky time passing on greater than 5 p.c to 10 p.c of the associated fee to shoppers.

“We count on Apple to carry off on any main will increase on telephones till this fall when its iPhone 17 is ready to launch, as it’s usually the way it handles deliberate value hikes.”

Even with some manufacturing shifting to Vietnam and India, most iPhones are nonetheless made in China, and people international locations weren’t spared from tariffs both, with Vietnam getting a 46 p.c levy and India’s coming in at 26 p.c.

Apple would wish to lift its costs by no less than 30 p.c on common to offset import duties, based on Counterpoint Research co-founder Neil Shah.

A probably sharp value hike might dampen demand for the smartphone and provides South Korea’s Samsung Electronics an edge, because the Asian nation faces decrease tariffs than China, the place all iPhones offered within the US are made.

“Our fast math on Trump’s tariff Liberation Day suggests this might blow up Apple, probably costing the corporate as much as $40 billion (roughly Rs. 3,40,850 crore),” Rosenblatt Securities’ Crockett famous, including that negotiations between Apple, China and the White House are probably. 

“It’s laborious for us to think about Trump blowing up an American icon…however this seems fairly robust.”

© Thomson Reuters 2025

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