Apple's iPhone prices set to skyrocket as US targets Chinese imports? How will it impact you?
US tariffs on Chinese goods may significantly increase iPhone prices, potentially by 30-40%. Apple faces a dilemma: absorb the cost or pass it on to consumers, risking sales decline.
FollowYou may need to buckle up if you're considering upgrading to the newest iPhone. Because of the tariffs that US President Donald Trump has placed, the price of your favourite iPhone model may increase significantly. According to reports, if Apple decides to pass on the extra costs to customers, iPhone prices would increase by 30% to 40%. The tariffs have been especially harsh on China, which produces the majority of Apple's iPhones. Apple may find itself in a difficult situation as a result of the tariffs. It will either pass the expense on to the customer or absorb it.
If Apple adds the tariff cost to the pricing, the most cheap iPhone 16 model, which is now priced at $799 (more than Rs 68,000), will increase by 43% to over $1,142 (more than Rs 97,000). The cost of a high-end model like the iPhone 16 Pro Max, which has a 6.9-inch screen and 1 terabyte of storage, is around $2,300 (approximately Rs 2 lakh).
Following President Trump's tariffs on a range of Chinese goods to compel American companies to move their manufacturing from China, this increase was implemented. Apple has previously used special exclusions to avoid price increases, but this time around, no such exemptions have been granted.
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The additional financial strain of higher costs might make matters worse for Apple, as iPhone sales are already waning in key areas. Customers are not in a rush to purchase the newest models, especially because some people find Apple's iPhone Intelligence's new artificial intelligence features unappealing.
Apple may see a steep drop in iPhone sales if it decides to pass the whole cost of the tariffs on to consumers. This is because higher pricing may force consumers to pick other brands, like Samsung. Since the majority of Samsung's phones are made in countries other than China, the company is probably going to gain from lower tariffs.
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