Apple may be preparing to raise the prices of its iPhones in response to President Donald Trump’s reciprocal tariffs, according to analysts. UBS estimates that the iPhone 16 Pro Max, currently priced at $1,199, could see an increase of up to $350 in the U.S. if it continues to be manufactured in China. This would represent a nearly 30% price hike for Apple’s top-tier model. The iPhone 16 Pro, priced at $999, could have a smaller $120 increase if production is moved to India.
Apple’s stock has dropped 20% over the past three trading days, wiping out nearly $640 billion in market value. The decline reflects investor concerns about how tariffs will affect consumer demand and Apple’s ability to maintain profitability. Analysts say there is uncertainty about how Apple will share increased costs with suppliers or pass them on to customers.
China, where Apple manufactures most of its products, faces a probable tariff rate of 54%, with smaller tariffs applied to other production locations such as India, Vietnam, and Thailand. Analysts say relocating iPhone production to the U.S. is unlikely due to logistical challenges and high costs. Wedbush estimates that an iPhone made in the U.S. could cost as much as $3,500.
Morgan Stanley projects that Apple may face an additional $34 billion in annual tariff costs. Barclays analysts warn that without raising prices, Apple’s earnings per share could drop by 15%. JPMorgan Chase predicts Apple may increase prices globally by about 6% to offset the tariffs.
Although Apple has added manufacturing sites in countries like India and Vietnam in recent years, analysts say these locations may also face tariffs under the new policies. This reduces Apple’s flexibility in managing its supply chain. Morgan Stanley notes that products not made in the U.S. would likely face high import tariffs under the current rules.
Apple could seek exemptions from the U.S. government for its products, but it remains unclear whether these will be granted. The tariffs create challenges for Apple as it balances higher costs with consumer affordability and demand for its products.
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