As U.S. President Donald Trump is in no mood to go back on the new reciprocal tariffs, iPhones could bear the brunt in the worst possible way. Already faced with the cut-throat competition from a plethora of Android smartphones that offer compelling features at comparatively low price points, the steep tariffs could make iPhones more vulnerable than ever before.
In the backdrop of tariff woes, will Android manage to throw iOS out of the ring in the U.S. market? Here’s what you need to know.
How Tariffs Could Drastically Raise iPhone Prices
Before answering this burning question, let’s first take a peek at the actual impact of the reciprocal tariffs on the iPhones. At the same time, it would also be helpful to figure out the ways in which Apple is likely to mitigate the price hike.
The unprecedented 54% tariffs on Chinese goods could drive iPhone prices in the U.S. by up to 43%. If the lingering fears translate into reality, the iPhone 16 Pro Max with 1TB of storage could see its price jump from $1,599 to nearly $2,300.
While the iPhone 16 Pro (256GB) price may increase to a whopping $1, 499 (from $999), the iPhone 16e will be available for over $850 (original price $599).
According to The Wall Street Journal, Apple has already swung into action, ramping up efforts to produce over 25 million iPhones in India this year. A large chunk of iPhone models made in India will be redirected to the U.S.
This amped-up iPhone production in India will help Apple meet about 50% of American demand this year. Considering the fact that there are 26% tariffs on Indian-imported goods, the tech giant could save $300 per device by shifting supply.
The other strategy that Apple is pursuing to soften the blow of the Trump-era tariffs is to put pressure on suppliers to lower the price of the components. Only time will tell to what extent this strategy will pay off.
Android May Cannibalize the Fence Sitters and Price-Conscious Buyers
Currently, iOS has about 57% market share in the US, as compared to 43% of Android. Though loyal customers especially those who are deep in the Apple ecosystem might continue to stay in the walled garden, the fence sitters and price-conscious buyers may likely ditch iOS.
A case in point, the iPhone 16e, which is already overpriced ($599) will jump into the flagship territory (around $800 segment) with a single rear camera and mediocre specs. Android smartphones like the Google Pixel 9a ($499) and the OnePlus 13R ($599) may well cannibalize the 16e.
Folks who could earlier think of getting the iPhone Pro models (starting at $999) might find it a bit difficult to go beyond $1, 300 or $1400.
With a variety of smartphones boasting flagship-level specs topped by the much-improved security/regular updates, I’m afraid Android may eat into Apple’s budget and mid-tier segments.
Android’s greatest weapon against iPhones “Price attack” has returned with more venom to haunt Apple – amid the mounting tariffs.
My next phone will be android. And it will be from a company that didn’t try to bribe a felon.
In reality, a phone is a camera, a battery and storage. The rest is frills.