LONDON (DM) The price of an iPhone could triple under Donald Trump‘s new tariffs, analysts claimed today as Apple fans consider boycotting the firm which has seen its stock plummet.
The cost of a 256GB iPhone 16 Pro could soar from $1,100 to as much as $3,500 if production had to switch from China to America, experts warned.
Most iPhones are still made in China, which faces a 54 per cent tariff on US exports – and Apple chiefs will now be looking at how much they can absorb the extra expense.
Apple iPhone 16 models are displayed at a store in London amid fears the price could soar
Tech fans have been outraged by the possible price hike, with some claiming it is time to say: “Goodbye iPhone, hello Samsung.” One said it was “Trump’s masterstroke to promote Android phones’ and another advised: ‘Just buy a Samsung problem solved.’
And with many of these costs expected to be passed on to the consumer, at least in America, some Apple customers are now preparing to abandon the US tech giant.
Apple sells more than 220 million iPhones a year – and its biggest markets include the US, China and Europe. However, shares of the company closed down 9.3 per cent last Thursday, losing $311 billion in market value on their worst day since March 2020.
Since then, the UK’s FTSE 100 has plunged to a one-year low this morning, despite Sir Keir Starmer promising new measures to support under-pressure manufacturers.
Analysts have warned that the scale of disruption in global financial markets is one of the worst to be felt in decades. The FTSE index dropped by about 5 per cent in early trading in London today as a sharp sell-off kicked in shortly after markets opened.
The panicked mood was felt across Europe, with Germany‘s Dax index recording a drop of about 6.5 per cent, and France‘s Cac 40 down around 5.3 per cent in the morning. Overnight, Asian stocks across the board were also sinking to new lows.
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Wedbush analyst Dan Ives, a Wall Street tech expert, said: ‘The economic pain that will be brought by these tariffs are hard to describe and can essentially take the US tech industry back a decade in the process while China steamrolls ahead.
50 per cent China tariffs, 32 per cent Taiwan tariffs would essentially cause a shut-off valve from the US tech landscape and in the process cause every electronic to go up 40 to 50 per cent for consumers.
“iPhones made in the US would cost $3,500 (vs. $1,000), and the AI Revolution trade would be significantly slowed down by these head scratching tariffs that need to be negotiated to realistic levels.”
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The cheapest iPhone 16 was launched in the US for $799, but could cost $1,142 (£885), based on separate projections from analysts at Rosenblatt Securities, who say the cost could rise by 43 per cent – if Apple can pass that on to consumers.
A more expensive iPhone 16 Pro Max, with a 6.9-inch display and 1 terabyte of storage, which currently retails at $1599, could cost nearly $2,300 if a 43 per cent increase were to be passed to consumers.
This could also have an impact on prices in the UK, if Apple decides to increase the price by the same amount in Britain – or it could increase both UK and US prices by a smaller amount.
But Angelo Zino, equity analyst at CFRA Research, said the company will have a tough time passing on more than 5 to 10 per cent of the cost to consumers.
“We expect Apple to hold off on any major increases on phones until this fall when its iPhone 17 is set to launch, as it is typically how it handles planned price hikes,” he added.
Any price rises for Apple could also give South Korea’s Samsung an edge, as the country faces lower tariffs than China, where all iPhones sold in the US are made.
Now, the cost of producing the iPhone is set to increase from $580 (£450) to $850 (£660), TechInsights analyst Wayne Lam told The Wall Street Journal.
Currently, the cost of assembly is around $30 in China, but this would soar by ten times if production moved to the US, he explained.
Apple declined the WSJ’s request for comment on any potential price increases related to the newly imposed tariffs. However, if analysts’ predictions are correct, the introduction of tariffs makes it likely that the cost of an iPhone will increase.
Harry Mills, director at Oku Markets, told MailOnline: “Apple makes a healthy margin on iPhones, but with costs increasing by more than 50 per cent, consumers can surely expect a feedthrough straight to prices, with the top-spec iPhone 16 Pro Max possibly reaching $1,400 to $1,500.”
“UK consumers likely won’t benefit from any weakness in the U.S. dollar, as the tech giant uses the same unit price of £999 or $999 for the iPhone 16 Pro and £1,999 or $1,999 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.”
Prem Raja, head of the trading floor at Currencies 4 You, said: “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.’
And Gabriel McKeown, head of Macroeconomics at Sad Rabbit, told MailOnline: ‘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 per cent rise could push an entry-level iPhone to nearly £900, driving consumers to their financial breaking point.”
Meanwhile Greg Zakowicz, senior ecommerce expert at Omnisend, said: “Considering there was a row of Silicon Valley tycoons standing behind Trump at his inauguration, cozying 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.”
By MARK DUELL, SONYA GUGLIARA and WILLIAM HUNTER/Daily Mail
