New Import Tariffs Could Rise iPhone Cost to $2,300 in US

The cost of Apple’s iPhone 16 smartphones in the US could rise to $2,300 for the older models after US President Donald Trump imposed large import duties. The production of these devices is still concentrated in China, which the US has imposed a 54% tariff on, Reuters reports, citing data from Rosenblatt Securities analyst Barton Crockett.

Image Source: Apple

According to the expert’s forecasts, the price of the basic iPhone 16 model in the US may increase from $800 to $1,142, that is, by 43%. The more expensive model, the iPhone 16 Pro Max with 1 TB of storage and a current price of $1,600, may rise in price to $2,300. The price of the iPhone 16e, released in February, may increase from the base $599 to $856. Also, according to the forecast, other Apple products will also rise in price: Apple Watch smartwatches – up to 43%, iPad tablets – up to 42%, and Mac computers and AirPods headphones – up to 39%.

Even though some production has moved to Vietnam and India, most iPhone models are still made in China. In addition, Vietnam and India have not escaped the new tariffs either: 46% for Vietnam and 26% for India.

In such conditions, Apple, like other electronics manufacturers, will face a difficult choice: either cover additional costs on its own, which will negatively affect profits, or increase prices on its products, passing on the costs to consumers.

According to CFRA Research analyst Angelo Zino, it will be difficult for the company to pass on more than 5-10% of the price increase to consumers. The expert believes that Apple will most likely postpone any significant price increases for smartphones until the fall, when the new iPhone 17 series is expected to be released. This is the period when the company traditionally implements planned changes to its pricing policy.

Barton Crockett of Rosenblatt Securities estimates that new US import tariffs could cost Apple up to $40 billion in lost sales, adding that there will likely be further negotiations between China, the US and Apple on the issue.