Experts suggest that Apple may raise iPhone prices to offset increased tariffs on Chinese products.
This comes after Trump raised import taxes on Chinese goods from 20% to 34%. One of the companies most affected by the change is Apple, as about 90% of its devices are manufactured in China, according to The New York Times.
According to Morgan Stanley, with the new tariffs, Apple’s annual costs to produce its devices in China could increase by $8.5 billion. This increase could either be absorbed by the brand through reduced profit margins or passed on to consumers.
If the company chooses the latter, iPhone prices could rise significantly. To make up for the tariffs, Apple would need to raise prices by an average of 30%, said Neil Shah of Counterpoint Research to Reuters.
A projection by Rosenblatt Securities revealed that the iPhone 16 Pro Max could rise in price from $1,599 to around $2,300 in the US, while the “budget” 16e would cost $856 — an increase of nearly $250.
However, Angelo Zino, an analyst at CFRA Research, doesn’t believe the company will be able to pass more than 10% of these costs on to consumers, especially considering the iPhone 17 is expected to launch in September this year. “That’s typically how they handle planned price increases,” he told Reuters.
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