Home
News
You are here

Tariffs are coming for the iPhone, but Apple has a four-part strategy already in place

By Johanna Romero

Published: Apr 06, 2025, 9:46 AM

2comments

Image of 3 people frowning with text in the background about money

Image source — Apple / Edited with AI

Apple may be heading toward a rare price shift for its flagship iPhones — but not because of a hardware upgrade or a flashy new feature. Instead, it’s external forces doing the pushing this time: new tariffs hitting just about every country where Apple manufactures its products.

According to Bloomberg’s Mark Gurman, Apple is now facing the toughest test yet for its long-standing pricing strategy. Since the iPhone X launched in 2017, the starting price for the base Pro model has held steady at $999 in the U.S. That’s not just a number — it’s a price ceiling Apple has been careful not to break, knowing the psychological impact it could have on buyers. But with new import taxes coming into play across its supply chain, that $999 barrier may finally be under pressure.

The iPhone cost has been steadily around $999 USD since the iPhone X. | Image credit — PhoneArena"

Here’s what’s making this moment different: the new tariffs aren’t just targeting China, but also countries Apple has spent years shifting toward in a bid to reduce reliance on Chinese manufacturing. Now, those same fallback locations are being hit too.

For reference, here’s a quick breakdown of the new tariff rates hitting Apple’s key manufacturing regions:
• India (iPhones, AirPods): 26%
• Vietnam (iPads, Macs, Watches, AirPods): 46%
• Malaysia (Macs): 24%
• Thailand (Macs): 37%
• Ireland (iMacs): 20%
• Indonesia (AirTags, AirPods Max parts): 32%
• China (across all devices): 54%

The bottom line? Apple’s global diversification efforts haven’t insulated it nearly as much as it had hoped. So now, the company needs a game plan — fast. Gurman reports that Apple is likely to lean on a four-part strategy to avoid passing these new costs directly to consumers, at least in the short term.

What is Apple's likely four-part strategy?

These are the four strategies that Gurman says Apple is likely to follow to combat tariffs:

First, Apple is expected to pressure suppliers to offer better rates on components and assembly. The company’s long-standing leverage over partners gives it some room to negotiate.
Second, Apple might absorb a small portion of the extra costs itself — with healthy hardware margins around 45%, it has some wiggle room.
Third, internal discussions are reportedly happening about adjusting iPhone pricing, though Apple may try to avoid making price the headline for the iPhone 17 this fall.
And finally, there’s an ongoing push to expand production in countries like Brazil and India that aren’t seeing the same steep tariffs — though scaling up there quickly won’t be easy, especially for Pro-level devices.

To buy itself time, Apple has also been stockpiling iPhones and other products in the U.S. ahead of the tariff deadline. That means any pricing adjustments might not hit until the next iPhone launch cycle — possibly giving Apple a chance to soften the blow by bundling changes with new hardware.

Are other smartphone OEMs going to be hit as hard?

Not likely. Samsung still builds in South Korea and Vietnam, and Google’s hardware team has been expanding its footprint in India. If Apple is forced to raise prices and its rivals aren’t, that could give others a temporary advantage — especially in price-sensitive segments.

There’s a lot riding on how Apple plays this. The company has already shown in markets like Japan and the UK that it’s not afraid to raise prices when necessary due to currency shifts or taxes. But in the U.S., where iPhone pricing has been almost sacred for years, even a small increase would mark a big shift.

If Apple ends up quietly raising the base iPhone 17 Pro price, maybe by tweaking storage tiers again or introducing a new Pro feature that justifies it, it could escape major backlash. But if prices go up too noticeably, that might end up being the bigger story — and not in the way Apple would want.

View Full Bio

Johanna 'Jojo the Techie' is a skilled mobile technology expert with over 15 years of hands-on experience, specializing in the Google ecosystem and Pixel devices. Known for her user-friendly approach, she leverages her vast tech support background to provide accessible and insightful coverage on latest technology trends. As a recognized thought leader and former member of #TeamPixel, Johanna ensures she stays at the forefront of Google services and products, making her a reliable source for all things Pixel and ChromeOS.

Read the latest from Johanna Romero