If you’re considering upgrading your older Apple device, the newly announced tariffs could significantly impact future prices. Analysts and economists suggest that immediate purchases might save money if conditions remain unchanged.
President Trump announced a 34% tariff on Chinese imports, adding to the existing 20%, resulting in a total 54% tax on goods from China. Since China remains one of Apple’s primary suppliers, industry experts consulted by Reuters predict iPhone prices could rise by up to 43%. For instance, the current-generation iPhone 16e, priced at $599, could increase to $856, while the $799 iPhone 16 might cost $1,142.
Equity research firm Rosenblatt Securities anticipates Apple will need to raise iPhone and Apple Watch prices by 43%, iPad prices by 42%, and Mac and AirPod prices by 39%. Counterpoint Research co-founder Neil Shah estimates an average price hike of at least 30% to offset tariffs. Morgan Stanley analyst Erik Woodring projects a potential increase of 17-18%.
Apple has diversified some production to Vietnam, India, Thailand, and Malaysia, but these regions are also subject to tariffs. A worst-case scenario involves price increases exceeding 40%, though many variables could alter this outcome. Apple may temporarily avoid price hikes by stocking up on U.S.-bound shipments before the April 9 deadline.
Apple could absorb part of the tariff impact, but significant price increases would likely reduce demand in an economically uncertain market. Conversely, absorbing costs would strain profit margins and stock performance. Analysts suggest Apple might delay major price hikes until the iPhone 17 launch this fall.
Congressional action remains unlikely due to Republican majority barriers, and exemptions for Apple are uncertain. While Trump previously exempted certain Apple products during his prior term, no such exemptions have been announced this time.
Companies like Nintendo are already reassessing strategies in response to tariffs. Apple has yet to comment officially but is likely evaluating its options internally.
Given the uncertainty, purchasing Apple devices soon could be prudent for those in need of upgrades. However, outcomes depend on potential negotiations or exemptions.
— new from MacRumors