If you are thinking of upgrading to the latest iPhone, you might have to buckle up. The cost of your preferred model of iPhone could take a big jump, due to tariffs imposed by US President Donald Trump.
Reports claimed that iPhones will be 30% to 40% pricier if Apple chooses to pass on the additional expenses to customers.
Apple’s iPhones are produced primarily in China, which has been particularly hard hit by the tariffs. The effect of the tariffs might put Apple in a tough spot. It will either absorb the cost or pass it along to the consumer.
How tariffs could change iPhone prices
The most affordable iPhone 16 model, now priced at $799 (over 68,000), would rise to around $1,142(over 97,000)—a hike of 43%—if Apple adds the tariff cost to the price.
For a premium model such as the iPhone 16 Pro Max, with its 6.9-inch screen and 1-terabyte storage, the price will be around $2,300(around 2 lakh).
This hike comes after President Trump’s tariffs on a variety of Chinese imports in order to put pressure on US businesses to relocate their manufacturing from China.
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Although Apple had previously managed to sidestep price hikes through special exemptions, this time around, no exemptions have been made.
With iPhone sales already flagging in major markets, the added financial pressure of increased prices might make things even worse for Apple.
Consumers are not rushing to buy the latest models, particularly as the new artificial intelligence features provided by Apple’s iPhone Intelligence are not enticing enough for some.
What’s next for Apple’s customers?
If Apple chooses to transfer the entire burden of the tariffs to customers, this may result in a sharp decline in iPhone sales since increased prices may compel customers to switch to other alternatives, such as Samsung. Samsung is likely to receive benefits from lower tariffs since most of its phones are produced in non-Chinese nations.
(With inputs for Reuters)
