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Trump tariffs: "Anyone considering buying an iPhone may want to get their skates on"

ended 07. April 2025

Newspage asked investment experts how Trump's tariffs could impact the price of an iPhone, and whether consumers considering buying one may want to get in quick. One said: “Apple’s iPhone is their most successful product and there’s a chance fans in countries beyond the US could be made to share the burden of increased prices. In such uncertainty, anyone considering buying an iPhone may want to get their skates on before Apple execs begin to look more closely at pricing.” Another added: “Consumers eyeing an upgrade might do well to act sooner and avoid a gamble on a £300 price hike.” A third warned: Analysts suggest U.S. prices might surge by up to 43% if Apple passes on the costs, potentially raising the iPhone 16 Pro Max price to approximately $2,300. To mitigate such steep increases in its home market, Apple might adopt a global pricing strategy, distributing the additional costs across various regions. This approach could lead to moderate price hikes in the UK and other countries, helping to maintain competitive pricing in the U.S. Anticipation of these increases may prompt consumers to expedite their purchases, aiming to secure current prices before adjustments occur." Views below.



 

9 responses from the Newspage community

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While the US braces for jaw-dropping price increases, Apple may soften the blow in the UK by spreading costs globally. However, in an inflation-weary UK where household budgets are already stretched thin, a modest 10% rise could push an entry-level iPhone to nearly £900, driving consumers to their financial breaking point.
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Trump’s tariffs could double the cost of iPhones in the US if Apple passes on the full whack of the 54% China tariff. That’s a $799 iPhone 16 rocketing up to $1,598 or a $1,599 Pro Max hitting $3,200. In the UK, Apple might dodge a direct hit as tariffs don’t apply to imports here but don’t expect prices to stay put given input cost rises. Apple could spread the pain globally, nudging UK prices up by, say, 20% (think £799 to £959) to offset US losses without tanking demand. People might rush to buy now, especially in the US, to beat the hike. But Apple’s cagey; they might eat some costs or snag exemptions. Either way, wallets will wince.
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It’d be commercial suicide for Apple to hike UK prices to offset US tariffs. British consumers are safe—just like we pay £100 for Levi’s while Americans pay $100, Apple will protect its global pricing to stay competitive. If anything, expect a few US shoppers eyeing up the UK for a cheeky tariff-free iPhone run.
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Considering there was a row of Silicon Valley tycoons standing behind Trump at his inauguration, cosying up to him, these sweeping tariffs are bound to hit them all where it hurts - their profit margins. Apple is no exception to this. While their products are proudly stamped with ‘designed in California’, it is quickly followed by ‘made in China’. The tech giant has been moving towards making its own hardware, such as the chips, but the phones are still assembled in China and will be affected by these tariffs. Apple’s iPhone is their most successful product and there’s a chance fans in countries beyond the US could be made to share the burden of increased prices. In such uncertainty, anyone considering buying an iPhone may want to get their skates on before Apple execs begin to look more closely at pricing.
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President Trump’s recent tariffs on Chinese imports could significantly impact iPhone pricing globally. Analysts suggest U.S. prices might surge by up to 43% if Apple passes on the costs, potentially raising the iPhone 16 Pro Max price to approximately $2,300. To mitigate such steep increases in its home market, Apple might adopt a global pricing strategy, distributing the additional costs across various regions. This approach could lead to moderate price hikes in the UK and other countries, helping to maintain competitive pricing in the U.S. Anticipation of these increases may prompt consumers to expedite their purchases, aiming to secure current prices before adjustments occur. However, significant price hikes could dampen demand over time, challenging Apple’s market position. The company’s response will likely involve a delicate balance between sustaining market share and managing profit margins amid these tariff-induced challenges.
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The price of iPhones could rise by as much as 40% thanks to new U.S. import tariffs hitting key components such as the device's processor from Taiwan, its memory and rear camera from Japan, its display from South Korea, and the battery and enclosure from China. Apple makes a healthy margin on iPhones, but with costs increasing by more than 50%, consumers can surely expect a feedthrough straight to prices, with the top-spec iPhone 16 Pro Max possibly reaching $1400-1500. UK consumers likely won't benefit from any weakness in the US dollar, as the tech giant uses the same unit price of £999 or $999 for the iPhone 16 Pro and £1,199 or $1,199 for the iPhone 16 Pro Max. Consumers eyeing an upgrade might do well to act sooner and avoid a gamble on a £300 price hike.
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Apple devotees could be tested when it comes to their next big release, given the price hikes expected. This may result in people keeping their tech for longer, which does not help Apple's future earnings potential and the stock recovery that Tim Cook and other investors hope for.
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If Trump’s tariffs hit, a 30–40% iPhone price rise in the US could trigger a global ripple effect. Apple may well spread the cost increase across markets to soften the blow at home – meaning UK prices could rise too, even if by a smaller margin. With iPhones already at a premium, even a 10–15% hike could put off buyers, leading them to keep their current model for longer or push them toward older models. Expect a short-term sales rush as consumers race to beat potential price hikes, especially for newer models. If the tariffs stick, Apple may need to rethink its pricing strategy or risk losing its edge in global markets.
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Why would Apple pass on all of the cost when they make such enormous profits? Surely, there comes a point where the consumer just stops buying something which, after all, is a luxury?