After China's exports to the US were subject to a 54 percent tariff, countless speculations about the anticipated price of Apple iPhones began circulating online. Initial reports hinted at a potential 43 percent increase in iPhone prices due to tariffs. However, the latest calculations suggest the actual price hike might be less than expected.
As reported by CNBC, UBS analysts have estimated that a China-made iPhone 16 Pro Max, currently retailed at $1,199 in the US, might see a 30 percent price hike. While a $350 increase in price is an extra burden on the shoulders of American consumers, it's still less than what was initially thought. Previous reports suggested that an iPhone 16 Pro Max with 1TB of storage could end up costing $2,300 for Americans.
Apple also produces the less expensive iPhone 16 Pro in India, a country hit with a 27 percent tariff. Based on recent calculations, the $999 iPhone 16 Pro made in India might see a $120 price increase in the US.
Another pre-tariff and post-tariff iPhone price calculation comes from The Wall Street Journal. As the report reads, it costs $580 for Apple to make an iPhone 16 Pro with 256GB of storage, including parts, testing, and assembly. Adding the 54 percent China tariffs to it, the total price for manufacturing this iPhone 16 Pro soars to $847, a roughly $300 blow to Apple's profit margin. Some additional costs, such as packaging, shipping, and marketing, should also be taken into account.
Note that these calculations are based on the current 54 and 27 percent tariff imposed on China and India, respectively. Donald Trump has recently threatened that if China hesitates to lift 34 percent retaliatory tariffs on imports from the US, it should face an additional 50 percent tariff, bringing the total tariff on China to a staggering 104 percent. Following the news, Apple's market cap plummeted by $638 billion.
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