Apple's iPhone Prices Could Skyrocket To Nearly $2,300 If Company Passes On Tariff Costs To Consumers

Trump Tariffs Could Send iPhone Prices Soaring to Almost $2,300, Analyst Warns

A new report suggests that President Trump's tariffs on Chinese imports could lead to a significant increase in the price of iPhones if Apple decides to pass on the costs to consumers. According to an analysis by Wedbush Securities, the tariffs could cause the price of an iPhone to jump by as much as 35%, bringing the cost of a top-of-the-line model to nearly $2,300.

The tariffs, which were implemented in 2018 as part of the ongoing trade dispute between the US and China, currently stand at 25% on $250 billion worth of Chinese goods, including many of the components used in Apple's iPhones. The tariffs are set to increase to 30% on October 15, and could further jump to 35% if the trade dispute is not resolved by the end of the year.

"We estimate that Apple could pass on approximately 35% of the tariffs to consumers, which would result in an increase of $400 to $500 per iPhone," wrote Wedbush analyst Dan Ives in a research note. "This would put the cost of a top-of-the-line iPhone at nearly $2,300, up from its current price of around $1,400."

Ives noted that Apple has a history of passing on costs to consumers, particularly when it comes to tariffs. In 2018, the company raised the prices of its Mac computers and other products in response to tariffs on steel and aluminum imports.

While Apple has not yet announced plans to raise the prices of its iPhones in response to the tariffs, the company has been working to reduce its reliance on Chinese suppliers. In recent months, Apple has announced plans to increase its production of components, such as processors and memory chips, in countries such as the US, Taiwan, and South Korea.

Despite the potential impact of the tariffs on iPhone prices, many analysts believe that Apple's strong brand loyalty and high demand for its products will help the company weather the storm. "We believe that Apple's pricing power and loyal customer base will allow the company to absorb some of the tariff costs, rather than passing them all on to consumers," said Ives.