Apple CEO Tim Cook stated that he cannot predict how tariffs might affect iPhone prices after June. During a May 1 earnings call, Cook confirmed that iPhones sold in the US are currently sourced from India, and many Apple devices are exempt from tariffs on China. However, uncertainty remains regarding what will happen after June when President Donald Trump’s reciprocal tariffs pause is set to expire.
Experts suggest that iPhone prices may increase regardless of tariff impacts. CNET Managing Editor Patrick Holland noted that the entry-level iPhone has remained at $829 for years, with the last price hike occurring in 2020. A potential price increase might be subtle, hidden within promotional deals or installment plans.
Since Trump announced his “Liberation Day” tariffs, there has been fluctuation in tariff rates affecting nearly 100 countries, including triple-digit levies on goods from China, where Apple produces most of its products. Despite this, smartphones and some electronics have been exempted from reciprocal tariffs, maintaining a 20% tariff on goods from China.
Apple reportedly plans to source iPhones for the US market from India by the end of 2026. India faces a 10% tariff on imports, despite being temporarily reprieved from a 26% reciprocal tariff.
The full cost of current tariffs could lead to price hikes ranging from 26% for products made in India to 145% for those made in China. However, companies may absorb some costs to remain competitive.
Apple might initially absorb tariff costs to stabilize sticker prices, gradually passing them on through service bundles and ecosystem upgrades. Consumers will still pay, but not all at once.
If you plan to buy an iPhone, doing so now might save money. However, if financing through credit cards or buy-now-pay-later plans, ensure you can cover costs before accruing interest.
— new from CNET