1 week Ago By [email protected] (Ayushi Jain)
Due to newly announced tariffs by President Donald Trump, Apple might have no choice but to raise the price of its iPhones. Currently, the base iPhone 16 starts at $799 in the US, but it could go up to as much as $1,142. The iPhone 16 Pro Max, which sells for $1,599, might go all the way up to nearly $2,300.
Your favorite iPhone could soon get a lot more expensive in the United States. Due to newly announced tariffs by US President Donald Trump, Apple might have no choice but to raise the price of its iPhones. Analysts warn that the price hike could be as high as 30 percent to 40 percent.
Most iPhones are still manufactured in China, which has now been hit with a massive 54 percent tariff. If these tariffs remain in place, Apple will either have to absorb the extra cost or pass it on to customers, reports Reuters. This could mean a big jump in prices for new iPhones.
Currently, the base iPhone 16 starts at $799 in the US, but it could go up to as much as $1,142 if Apple passes the full cost to buyers. The top-end iPhone 16 Pro Max, which sells for $1,599, might go all the way up to nearly $2,300 with a 43 percent increase, according to estimates from Rosenblatt Securities. Also read: iPhone 16 Pro Max available with over Rs 15,500 discount: How to avail this offer “This whole China tariff thing is playing out right now completely contrary to our expectation that American icon Apple would be kid-gloved, like last time,” Barton Crockett, analyst at Rosenblatt Securities, was quoted as saying in the report.
Apple sells over 220 million iPhones every year, and the US is one of its biggest markets. But a sharp price rise could hurt sales. Experts say that the new Apple Intelligence features — such as rewriting emails, summarising notifications, and connecting with ChatGPT — haven’t excited buyers enough to drive strong demand.
Also read: iPhone 16 available with over 12,000 discount: How to avail this offer Some analysts believe Apple won’t be able to increase prices by more than 5 percent to 10 percent without seeing a drop in sales. “We expect Apple to hold off on any major increases on phones until this fall when its iPhone 17 is set to launch, as it is typically how it handles planned price hikes,” said Angelo Zino from CFRA Research. Even though Apple is moving some manufacturing to countries like Vietnam and India, those places are also facing tariffs of 46 percent and 26 percent respectively.
This makes it hard for Apple to avoid the impact. “Our quick math on Trump’s tariff Liberation Day suggests this could blow up Apple, potentially costing the company up to $40 billion,” Crockett said. Tech news writer by day, BGMI player by night.
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