If you have an older Apple device that you’ve been considering upgrading, you’re probably wondering how the newly announced tariffs might.
If you have an older Apple device that you’ve been considering upgrading, you’re probably wondering how the newly announced tariffs might impact prices going forward, and whether it’s worth buying now before there’s a price hike.
Given analyst and economist responses to the tariffs, market panic, and Trump’s stance on the current financial chaos, the answer is that making a purchase immediately might save you some cash if things don’t change.
iPhones Could Get Much More Expensive
Trump announced a 34 percent tariff on China, which combines with the previous 20 percent tariff for a total of a 54 percent tax on imports from China. China is still one of Apple’s major suppliers, and industry analysts consulted by Reuters suggest that iPhone prices could increase by up to 43 percent.
Right now, the most affordable current-generation iPhone, the iPhone 16e, is priced starting at $599. If Apple doesn’t receive some kind of exemption or if tariffs don’t change, the iPhone 16e could be priced starting at $856. The $799 iPhone 16 could cost $1,142, close to the starting price of the iPhone 16 Pro Max.
Equity research company Rosenblatt Securities believes Apple will need to raise iPhone and Apple Watch prices 43 percent to cover tariffs, iPad prices 42 percent, and Mac and AirPod prices 39 percent. Counterpoint Research co-founder Neil Shah believes Apple would need to raise prices by at least 30 percent on average to offset the tariffs.
Morgan Stanley analyst Erik Woodring told CNBC that Apple would likely need to raise prices by 17 to 18 percent.
Apple has moved some of its production to other countries like Vietnam, India, Thailand, and Malaysia, but all of those locations are subject to tariffs as well. A 40 percent+ price increase is a worst case scenario, and there are a lot of variables at play and factors that could shift in the near future, but it doesn’t look like prices are going to remain static.
Could Apple Absorb the Increase?
Trump said that he would implement tariffs, and tech companies like Apple knew that this was coming. It’s likely that Apple has been ramping up U.S. supply of current devices so that it can temporarily avoid raising prices. Under the terms of the tariff executive order, Apple won’t have to pay tariffs for goods that are on a vessel and in transit to their destination before 12:01 a.
