The iPhone 16 Pro lineup is making headlines with new colors and its first fully recycled aluminum chassis. But that’s just the tip of the iceberg. Apple is now facing a real challenge following President Trump’s announcement of hefty tariffs on Chinese imports. The tariffs were set to start on April 9, but Trump granted a 90-day delay for many of them. However, he slapped a staggering 104% tariff on Chinese goods, raising it to 125% on the same day, effective immediately.
This situation could hit Apple hard, given that it produces most of its devices in China. iPhones alone account for around half of Apple’s revenue, making them crucial to the company’s success. In the US, the iPhone dominates the market, boasting more than 50% market share.
So, what does this mean for iPhone prices? Tech analyst Dan Ives told CNN that these tariffs could provoke a “category 5 price storm” for personal electronics. He painted a vivid picture, likening the tariffs to “flipping a boat upside down in the ocean with no life rafts.” In short, most tech companies, including Apple, don’t really have solid alternatives outside of China for manufacturing.
While the goal of these tariffs is supposedly to bring manufacturing back to the US, Ives warned this could skyrocket prices. He estimated that a device currently priced at $1,000 could cost around $3,500 if made in the US—likely out of reach for many consumers. Plus, shifting Apple’s production to the US would take years, making it an impractical short-term solution for both Apple and consumers eager for the latest models.
As the tariff situation evolves, predicting future iPhone prices is tricky. A recent UBS analysis revealed that the tariffs could boost the price of the iPhone 16 Pro Max 256GB, made in China, by about $675—a 56% hike. This model features advanced artificial intelligence capabilities and is the latest in Apple’s lineup.
On a brighter note, if Apple manages to shift some production to India, which isn’t affected by these tariffs, it could ease some price pressures. The UBS analysis also found that the iPhone 16 Pro 128GB, manufactured in India for $999, might only see a 12% increase, bringing its price to approximately $1,119.
Given these factors, it seems unlikely that Apple would move its manufacturing to the US, though continuing production in China might become too expensive for the company and its customers.
