The price of Apple’s iPhones in the US could surge by up to 43 percent if US President Donald Trump’s proposed "reciprocal" tariffs come into effect, according to industry sources and media outlets on Friday.
Reuters reported that consumer goods such as iPhones would be among the hardest hit by Trump’s tariff policies. Analysts warned that if Apple decides to pass the additional costs onto consumers, iPhone prices could be expected to rise by some 30 to 40 percent.
Rosenblatt Securities projected that Apple could impose price hikes of up to 43 percent to offset the tariffs. Its analysis suggests that the iPhone 16, priced at $799 in the US, could jump to as high as $1,142. Meanwhile, the iPhone 16 Pro Max, now at $1,599, could reach $2,300. The newly released iPhone 16e, which retails at $599, could climb to $856 under the tariff regime.
Apple sells over 220 million iPhones annually, with the US, China and Europe its primary markets. Currently, Apple manufactures iPhones in China, where the total tariff burden would amount to 54 percent — an existing 20 percent tariff plus an additional 34 percent reciprocal tariff recently announced.
While Apple has also diversified its production to Vietnam and India, those countries would likewise be subject to tariffs of 46 percent and 26 percent, respectively.
According to industry experts, Apple faces a tough choice between absorbing the additional costs or passing them on to consumers. Counterpoint Research analyst Neil Shah said, “Apple would need to raise its prices by at least 30 percent on average to offset import duties.”
Apple’s stock price took a severe hit, plunging 9.3 percent on Thursday — the sharpest single-day drop since March 2020. Rosenblatt Securities estimated that the tariffs could cost Apple up to $40 billion.
Rosenblatt Securities analyst Barton Crockett said, “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.”
During his first term, Trump imposed broad tariffs on Chinese imports, but Apple was granted exemptions or deferrals for specific products.
Despite these tariff concerns, some analysts argue that Apple may not rush to raise iPhone prices immediately. With sales already sluggish in major markets, further price hikes could dampen demand.
CFRA Research equity analyst Angelo Zino said, “Apple will have a tough time passing on more than 5 percent to 10 percent of the cost to consumers. … 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.”
Regarding analysts’ forecast, an Apple Korea official said, “At this time, we have no immediate plans to raise prices further.”
Reuters also suggested that soaring iPhone prices could weaken smartphone demand, giving Samsung Electronics, which faces lower US tariffs, a potential competitive edge.
However, a Samsung Electronics official tempered expectations, saying, “While we may gain market share, it remains to be seen whether it will be beneficial in terms of overall profitability.”
By Jie Ye-eun (yeeun@heraldcorp.com)
