Analysts predict iPhone price hikes as tariffs impact production costs

Recent developments surrounding the tariff imposed on imports by the Trump administration have led to concern among consumers, who are worried that the prices of several products could shoot up like crazy. Apple is also expected to be hit by the financial implications.

The Wall Street Journal reports that the pre-tariff total cost for manufacturing an iPhone 16 Pro with 256GB of storage is about $549.73, and $580 when factoring in testing and assembly expenses. However, this figure does not take into consideration the costs related to research, development, marketing, and other operational expenses.

With the new tariff in place, Apple's production cost for the same iPhone model is estimated to jump to approximately $847. This substantial expense could impact the company’s pricing strategy.

The Wall Street Journal highlights that, despite these challenges, Apple still maintains a "healthy profit margin" even when additional costs are considered. While the company has not officially commented on how it plans to address the repercussions of these tariffs, industry analysts suggest it is unlikely that Apple will absorb the entire cost. Many people are speculating that the 54% import tariff on goods from China could force Apple to increase the prices of its products as the company adjusts to the new financial landscape. Apple is also reportedly considering moving a large chunk of the manufacturing to other countries, to reduce the tax burden.

Apple sells the 256GB variant of the iPhone 16 Pro Max at a retail price of $1,199, which is already considered to be pretty expensive. A potential increase in the price would put the device out of reach for many, and could lead to fans panic-buying an iPhone sooner than later.

Nintendo has delayed pre-orders for the Switch 2 in the U.S. as it analyzes the tariff situation.

Source: 9to5Mac