If you’ve been waiting on the iPhone 17 for your upgrade, you may want to consider today’s iPhone 16 first, especially if your wallet is feeling light lately. Tech is going to get more expensive because of the Trump Tariffs, and Apple may not be able to escape the White House’s whims this go around. The only lingering question is, how much more expensive could iPhones get?
Last week, Reuters suggested Apple could raise the top-end iPhone 16 Pro Max model with 1 TB of SSD space from $1,599 to $2,300. The regular iPhone 16 at $800 would transform into $1,142, according to projections from equity research firm Rosenblatt Securities,. If those crystal ball forecasts did occur, it likely wouldn’t impact current stocks of iPhone 16 but the iPhone 17—especially considering that analysts say Apple has shipped more stock to the U.S. in anticipation of tariffs. Trump has also suggested he’ll put even harsher tariffs on semiconductor makers, which could potentially affect the price as well. However, Bloomberg’s Apple guru Mark Gurman says things are a little more complicated. Apple could raise prices to cover tariff costs, but Gurman suggested the company would eat some of those costs itself.
Apple has an expansive supply chain, and doesn’t have all its eggs in one basket. Gurman argued the Cupertino, California tech giant builds iPhones in both China and—increasingly—India. India has a smaller, 26% tariff than the total 54% levy against China. Apple could shift more production toward India, but that takes time and money. Trump’s tariffs are supposed to be in place by April 9, barring some last minute flip-flopping.
Apple’s corporate culture sets them apart from other companies. It’s more keenly aware of fan perception than Google may be and it’s more keenly aware of how the phrase “more-expensive iPhone” will dampen excitement for its upcoming devices. The last time Apple raised prices on its pro-level phones was in 2017 with the iPhone X. However, the regular iPhone has been more susceptible to price fluctuations. The iPhone 8 was $700 in 2017, and that continued up until the iPhone 11 in 2019. The 2020 iPhone 12 started at $800, which is the same price as last year’s iPhone 16. Given those bumps in price it does feel like the iPhone is due a raise, tariffs or no.
Yet this talk of rising prices ignores Apple’s waning worldwide iPhone sales over the past two smartphone generations. The company’s latest quarterly earnings report in January showed the company missed Wall Street’s iPhone sales expectations, mostly from lagging sales in China. A higher-priced iPhone will incentivize fewer people to upgrade, especially as folk are staring down the barrel of economic uncertainty.
The last time President Donald Trump implemented tariffs around 2018, Apple CEO Tim Cook managed to sweet talk Trump into exempting his company’s products. In January, Cook donated $1 million to the president’s inauguration, landing him a seat behind 47 next to the many other billionaire tech oligarchs ready to kiss the ring. Few but Trump’s inner circle expected the White House to declare a trade world against the entire world. It’s a reap what you sow situation, though inevitably its consumers and lower-level workers who will take the brunt of those costs.
