Apple has only gradually increased the price of iPhone models, but this could change in the coming months. U.S. President Donald Trump has announced a hefty tariff on imports from various countries, effective April 9. The tariffs will have a direct impact on Apple’s performance and the products it will sell in the region, as most of the iPhones and other products are assembled in China, and these could adhere to a massive 54 percent tariff.
Apple could increase the price of its iPhone models by 43 percent following Trump’s new tariff plans
According to estimations by analysts at equity research from Rosenblatt Securities (via Reuters), iPhone prices in the United States could be increased by up to 43 percent due to the latest tariff imposition. The current top-of-the-line iPhone 16 Pro Max can be bought for a massive $1,599, and if the estimations have any heft, the tariffs could increase the price of the same device to almost $2,300 in the U.S. This is only applicable if the company does go ahead with a price hike to offset the tariffs.
It remains to be seen whether Apple will move forward with the price hike or find new ways to balance the new cost structure. The company could throw the entire tariff onto the consumers, or it could also decrease its profit margins, and both of these notions appear to be highly unlikely. Apple’s stock prices have taken a massive hit after Trump announced the new tariff plans, which have dropped by 15 percent.
The main victim of the entire ordeal will be the end user, who will have to bear the cost of the new tax policy. Even the most affordable smartphone from Apple, the iPhone 16e, will be subject to price hikes, and to be fair, it will no longer be a budget phone for many users. If speculations are true, the iPhone 16e could go up from $599 to $850, with the same 43 percent price increase. The base iPhone 16 Pro model, which starts at $999, will go up to $1,400.
According to Neil Shah from Counterpoint Research, Apple would have to increase the prices by 30 percent on average to offset the impacts of the newly announced tariffs. The Cupertino giant has not commented on the scenario at this point, and it is unclear if the company will increase the price of its products sold in the United States. It is also unclear if Apple will implement the new pricing strategy with its current iPhone 16 lineup or if it would see fit to wait until later this year when it announces the new iPhone 17 lineup. We will share more details on the subject as soon as further information is available.
