Expect a price increase for iPhones this year, primarily due to factors beyond tariffs, despite some devices currently being exempt from reciprocal tariffs imposed on imports from China. Experts, including CNET managing editor Patrick Holland, suggest that the base price of the entry-level iPhone has remained unchanged since 2020 and is likely overdue for a hike. Even if the increase appears minor—possibly concealed within promotional deals or installment plans—it’s still expected to happen. Recent tariff changes, including proclamations from former President Trump, have set the stage for a complex pricing landscape for Apple and its competitors.
In light of these developments, Apple might consider relocating a significant portion of its iPhone assembly to India. This relocation comes amid discussions of tariffs that could range from 10% to 20%, depending on the country of origin for the products. For instance, iPhones made in India might face a lower tariff compared to those produced in China. Current estimates suggest that if tariffs were fully applied, Apple products manufactured in India would rise by approximately 26%, while Chinese-manufactured goods could see an increase of around 145%. As of now, iPhones manufactured in China are still subject to a 20% “fentanyl tariff,” complicating the price structure further.
While concerns over tariffs loom large, it’s essential to recognize that the pricing of an iPhone is influenced by various factors besides assembly location. The global supply chain for Apple products relies on a wide array of components sourced from multiple countries, which may also face varying tariff levels. Experts argue that tariffs won’t necessarily lead to an equivalent price increase, as companies may absorb some costs to remain competitive. Notably, the price adjustments may not be immediate; they could manifest over time through bundled services or gradual price increases.
The timeline for potential price increases remains uncertain. If Apple sells out of existing stock before new tariff-related shipments arrive, consumers may see hikes in prices for future purchases. Regardless of how the tariff situation unfolds, Apple has avenues for mitigating cost impacts through its extensive service offerings, including music and data plans. Experts contend that Apple might absorb initial tariff costs while gradually shifting some expense to consumers through bundled services, ultimately still resulting in a higher total price due to continuous updates within its ecosystem.
Trump’s tariff agenda has caused significant fluctuations in the market, with some consumers advising immediate tech purchases to avoid future price hikes. Buying now could yield savings, but analysts recommend that consumers consider the impact of financing options carefully. High-interest rates on credit may negate any potential savings from preemptive purchases, particularly for expensive items like iPhones. Those without immediate cash might be better off waiting for a more stable economic situation before buying new tech, especially given the unpredictability surrounding tariffs.
To navigate the upcoming changes effectively, consumers could explore alternatives to new iPhones, such as purchasing last year’s models or certified refurbished devices. Apple’s Certified Refurbished program offers a strategy akin to the used car market, extending device lifespans while minimizing immediate costs. Trading or selling older devices could also offset expenses, allowing users to remain within the Apple ecosystem while effectively managing their budgets. As technology prices shift due to tariffs and other economic factors, such strategies will become increasingly relevant for savvy consumers.
