iPhones expected to become pricier due to Trump administration's tariffs

The world’s favorite iPhone is expected to become significantly more expensive due to tariffs imposed by the Trump-led US government on countries around the world, which would transform the global trade landscape. 

A series of sweeping tariffs is anticipated to hit consumer goods, including the iPhone. If the company passes the cost burden to the consumers, the price would increase by 30% to 40%. 

Apple holds a strong market presence in regions such as the US, China, and Europe, but its shares plunged 9.3% on Thursday, marking their worst day since March 2020.

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Analysts at Rosenblatt Securities stated that with the expected increase in the tariff, the cost of the cheapest iPhone model could surge by at least 43%, indicating the iPhone 16 model was launched in the US with the price of $799, would cost $1,142 if Apple passes the tariff burden onto consumers.

The top-of-the-line iPhone 16 Pro Max, featuring a 6.9-inch screen and 1TB storage, may see its price skyrocket from $1599 to approximately $2300 if the proposed 43% price hike is passed on 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," Reuters quoted Barton Crockett, an analyst at Rosenblatt Securities. 

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To compensate for import duties, Apple would likely need to increase its prices by a minimum of 30% on average, says Neil Shah, co-founder of Counterpoint Research.

A significant price increase would weaken demand for iPhones and give Samsung an advantage, as South Korea benefits from lower tariffs compared to China, where US-bound iPhones are manufactured.