A new wave of tariffs imposed by U.S. President Donald Trump is threatening to drive up the cost of Apple products — and iPhones could see the steepest hikes, Reuters news report said.
Telecom industry analysts predict that if Apple decides to increase product prices to offset tariff costs, the price of iPhones and Apple Watches will be rising by 43 percent, iPads by 42 percent, and Macs and AirPods by 39 percent.
Most Apple devices, including the flagship iPhone, are still manufactured in China, which has been hit with a hefty 54 percent tariff under the administration’s expanded trade measures. Analysts say if Apple chooses to pass those costs on to consumers, prices could skyrocket by 30 percent to 40 percent — or even more in some cases.
Take the iPhone 16, which currently starts at $799. Under new cost projections, that same model could soon be priced around $1,142. The high-end iPhone 16 Pro Max, with a 6.9-inch display and 1TB of storage, might jump from $1,599 to nearly $2,300 — a 43 percent increase, according to Rosenblatt Securities.
The more affordable iPhone 16e, introduced at $599 as an entry-level model with Apple’s AI features, could also see its price surge to $856 if the full tariff burden is passed on.
Even though Apple has started to diversify production to countries like Vietnam and India, those regions are also facing new levies — 46 percent for Vietnam and 26 percent for India — limiting the company’s ability to avoid increased costs.
“This whole China tariff thing is playing out completely contrary to our expectation that American icon Apple would be kid-gloved, like last time,” Rosenblatt Securities analyst Barton Crockett said.
If Apple raises prices to offset tariffs, the consequences could be significant. With iPhone sales already slowing, a steep price hike could make the devices less attractive to consumers and give an advantage to rivals like Samsung, which faces lower tariffs.
Counterpoint Research estimates Apple would need to hike average iPhone prices by at least 30 percent to maintain margins, but analysts like Angelo Zino at CFRA Research believe Apple might only be able to pass along a 5–10 percent increase without damaging demand.
For now, Apple is staying silent on how it plans to handle the situation. But unless exemptions are granted or negotiations change course, it’s likely that the company — and its customers — will feel the squeeze.
TelecomLead.com News Desk
