Apple is flying in iPhones from Asia to outrun Trump's tariffs, but a price hike seems imminent (UPDATED)
Update from April 9th, 2025:
Donald Trump's 104% tariff on Chinese products imported into the U.S. has taken effect. As a result, we could see iPhone prices rise sharply. For example, if Apple decides to pass the entire additional costs of the tariff on to American consumers, a 1TB iPhone 16 Pro Max could have its price tag soar from $1,599 to $3,200.
Trump is playing hardball with China, which is unsettling on many levels. As for Apple, expect the prices to double for their products.
— Patti Brennan, certified financial planner and CEO of Key Financial, Cnet, April 9, 2025
The tariffs could increase Apple product prices by about 10% in the coming months, which could lead to price increases of $50 to $150 on higher-end products like the iPhone Pro Max models and MacBook Pros...
— Stephan Shipe, certified financial planner and CEO of Scholar Financial Advising, Cnet, April 9, 2025
Apple could decide to eat some or all of the additional import tax which would hurt the company's profit margins and sink its stock even more.
The original story from April 8th, 2025 follows below.
Apple is so desperate to get iPhone inventory out of China and India and into the U.S. before higher tariffs kick in that it has flown five planes full of its smartphones into the U.S. Moving its stockpile of iPhones around the world and into the States is all Apple can do to assure that the already assembled cargo of phones doesn't become taxed out of the price range that Americans can pay.
At least for now, before Apple starts importing phones from its Chinese warehouses and pays the new import tax when they land in the U.S., demand for the iPhone in the states has picked up dramatically. A new report from Bloomberg cites Apple Store employees who say that the retail locations in the U.S. were jam-packed over the weekend with consumers looking to price iPhone models before President Donald Trump's tariffs force Apple to make a tough decision.
Apple has a very tough decision to make with one killing the stock and the other hitting customers in their wallets
The tech giant can either decide to commit equity suicide, eat the additional tax, lower its profit margin, and send its stock dropping to prices we haven't seen in years, or pass on the additional cost to consumers. The latter would mean that Apple would have to impose the dreaded price hike on its most important product. Of course, some type of combination is also possible.
Apple Stores have been full of consumers worrying about the impact of Trump's tariffs on iPhone pricing. | Image credit-Apple
With the president threatening to jack up the tariff on China by an additional 50% (which would take the total amount of the country's import tax to 104%), iPhone prices could triple. And last night China decided to respond with a statement that it will "fight to the end," not exactly the words that someone in the market for a new iPhone wants to hear. Apple Store employees say that customers are worried and are asking questions about the tariffs and iPhone pricing. "Almost every customer asked me if prices were going to go up soon," said one.
"Trump is playing hardball with China, which is unsettling on many levels. As for Apple, expect the prices to double for their products."
This time of the year is considered a slow season for iPhone sales. That makes the frenetic actions of shoppers inside U.S. Apple Stores seem even stranger than they appear. Even consumers who were holding off the purchases of their next iPhone until September when the iPhone 17 line is released are deciding to buy an iPhone 16 model now before prices rise.
For its part, for three days during the last week of March, Apple flew five planes full of iPhones from China and India to the U.S. This news came from senior Indian officials who told the Times of India. The same story in that publication states that Apple has no plans to raise iPhone prices in India or in any other market due to the tariffs. Of course, should we see Trump raise tariffs to even higher levels, Apple might not be able to hold that line.
Apple could be forced to squeeze suppliers
To beat the imposition of higher import taxes in the U.S. as ordered by President Trump, Apple has been moving iPhone inventory out of China and India to the United States. This stockpiling is actually the reason why Apple is able to keep prices at current levels since the units arrived in the U.S. before Wednesday, April 9th when the 34% tariff on Chinese imports kicks in. As we noted earlier in this article, there could be an additional 50% tacked on unless China reverses the 34% tariff it placed on U.S. imports into the country. Trump has imposed a 26% reciprocal tariff on imports to the U.S. from India which also starts April 9th.
At this point, all we can say is that if you are thinking about buying an iPhone you might want to make the purchase now before all current inventory in the U.S. is exhausted. At that point, when this stockpile is replenished, the new tariffs will be charged on those handsets.
There is a major indication that Apple plans to eat most or all of the additional tariffs charged on iPhone shipments to the U.S. Bloomberg has reported that to reduce the cost of building an iPhone to keep its profit margin high, Apple might be forced to squeeze its suppliers to lower the prices that they are charged for components. If this is legit and Apple is working to prop up iPhone profit margins, it suggests that the company plans on paying most of the additional tax itself.
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