Analyst predicts tariffs may surge iPhone prices by up to 43 percent
The new tariffs U.S. President Donald Trump imposed on multiple countries are expected to change the global trade landscape. iPhones may be one of the most affected goods.
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| File photo: iPhone 16 Series in different sizes |
New tariffs are expected to make iPhones pricier than ever, setting a record high for their cost
Rosenblatt Securities analysts said that iPhone prices could rise by 43 percent if Apple transfers the burden of these costs to its customers in the US.
For context, China recently faced a 54 percent tariff. The majority of iPhones are still manufactured there.
If this happens, the iPhone 16 Pro Max 1TB, which currently retails at USD 1,599, may cost nearly USD 2,300. The new iPhone 16e, which costs USD 599, may cost USD 856.
The rest of the Apple line from AirPods, Macs, iPads, and Apple Watch are expected to get a 39 to 43 percent increase in prices.
Also, other countries with iPhone production, like Vietnam (46 percent) and India (26 percent ), were hit by new tariffs.
Reuters reported that Counterpoint Research said that Apple may need to increase its price by at least 30 percent to offset import duties.
Rosenblatt Securities noted that Trump's new tariffs could potentially cost Apple up to USD 40 billion (around PHP 2,295,392,976,000).
CFRA Research expects Apple to hold off on any major increases on phones until this fall when its iPhone 17 is set to launch.
The report stated that Samsung (25 percent tariff) could have an edge in these developments as South Korea faces lower tariffs than China.
Source: Reuters
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