Several analysts estimated that Apple may raise its product’s price due reciprocal tariffs President Donald Trump imposed on all U.S.’ trade partners, including China, where majority of the company’s assembly takes place.
With China facing 104% tariffs, UBS analysts estimated that iPhone 16 Pro Max, Apple’s highest-end iPhone, that were manufactured in China may see its price go up about 30% or $350 from the original price of $1,199. Meanwhile, the iPhone 16 Pro that is manufactured in India may increase its price by $120 from the original price of $999.
Over the past three trading days, Apple already lost $640 billion as its share dropped by 20%. This plummeting is due to weak purchasing power and the concern that the company will raise its price to compensate for the loss over Trump’s tariff.
Apple may not only face high tariffs from China, but also from other countries the company diversified its production to as well, such as India, Vietnam, and Thailand. Morgan Stanley analysts speculated that Apple could pay a tariff of $34 billion per year.
Relocating iPhone production to the U.S. is also impossible, according to most supply chain experts. And even if the company is capable of pulling that move, an analyst from Wedbush Securities stated that the iPhone would then cost $3,500.
JPMorgan Chase analysts stated last week that Apple may raise its princes 6% across the world. If the tech company chooses not to, an analyst from Barclays stated Apple may suffer as much as a 15% cut to earnings per share.
