Apple customers are rushing to upgrade their iPhones as fears grow over potential price hikes due to new tariffs announced by former President Donald Trump. These tariffs are set to impact key parts of Apple’s supply chain, especially in China, where most of the company’s hardware is manufactured.
The new tariffs include a hefty 54% on goods imported from China, along with 46% on products from Vietnam and 26% for those from India. This means that the cost of manufacturing an iPhone could rise significantly. Research firm TechInsights estimates that production costs could jump from $580 to $850, a 45% increase. Similarly, analysts at Rosenblatt Securities suggest that if these costs are passed on to consumers, the price of an iPhone could soar from $799 to as much as $1,500.
With these potential increases looming, many customers are not waiting to see what happens. Joel Burke, a 32-year-old policy professional, expressed his concerns, stating, “You gotta take care of your own personal needs and there’s no question in my mind that the prices are going to go up.” Allison Post, a 69-year-old health writer, echoed this sentiment, saying that the tariff announcements pushed her to upgrade her old iPhone sooner than planned.
Reports from Apple stores in the San Francisco area confirm that customers are citing tariffs as a reason for their purchases. Apple has not yet announced whether it will raise prices or absorb the additional costs to keep prices steady.
In response to these challenges, Apple is reportedly looking to shift more production from China to India to reduce its reliance on Chinese manufacturing. There is also speculation that Trump may grant Apple a tariff exemption for iPhones, similar to what he did during his first term.
Despite the uncertainty, Apple shares saw a 4% increase in early trading, reflecting some optimism in the market about potential negotiations to resolve the tariff issues. However, Apple’s stock has dropped over 22% since the beginning of the year, losing more than $300 billion in market value in a single day after the tariff announcement. This decline marked Apple’s worst one-day performance since September 2020.
As customers hurry to upgrade their devices, the future pricing of iPhones remains unclear, leaving many to wonder how these tariffs will ultimately affect their wallets.