The Apple tariff effect: A price hike for iPhones? Here is what to expect

If you're considering shelling out the extra cash to get the newest iPhone, then there's worse news for you. You might have to prepare yourself to purchase a new iPhone. Inform us that US President Donald Trump's tariffs can cause the price of your desired iPhone model to skyrocket.

The Tariff Impact

News has been reported that if Apple places the additional cost burden on consumers, then the iPhone will be 30% to 40% pricier. Apple's iPhones are predominantly made in China, and this is causing a very big impact on the tariff. The effect of tariffs will land Apple in hot water. Now the question arises how the company will deal with this cost.

The cost of the iPhone 16

Discussing the cheapest iPhone 16 version, it is available at $ 799 (over Rs 68,000) right now. If tariff costs are included in this, then its cost will go up to around dollar 1,142 (over Rs 97,000), a hike of 43%. Discussing high-end ones such as the iPhone 16 Pro Max, it contains a screen of 6.9 inches and 1 terabyte storage, it will be priced at around $ 2,300 (around Rs 2 lakh).

Why the price hike?

The hike in the cost of iPhones follows President Trump's imposition of a ban on various Chinese imports to pressure American companies to relocate their production from China. Apple, however, had previously been able to halt the hike in cash through special discounts, but this time around no discount has been offered.

The potential consequences

If Apple passes the entire tariff burden to customers, it could result in a massive drop in iPhone sales since higher prices might compel customers to opt for alternatives like Samsung. Samsung will be most likely to gain from reduced tariffs since the majority of its phones are manufactured in non-Chinese nations.