President Donald Trump announced new sweeping tariffs for countries, with some already taking effect on Saturday, according to Reuters.
This already made a big impact on Nintendo, which decided to delay the start of the Switch 2 preorders that were supposed to begin on April 9. It has also left analysts guessing what other companies and goods will be hit hard by the tariffs, and one that came up multiple times was Apple.
Due to the tariffs, there is a possibility that the price of a new iPhone could skyrocket, according to analysts.
An analyst at Rosenblatt Securities said in an investor note that Apple would need to increase the price of the iPhone by 43% to cover the cost of tariffs, as reported by Reuters. This could mean that an iPhone 16 Pro Max with maxed out memory of 1TB could see a jump in cost to more than $2,300.
Dan Ives, an analyst at Wedbush Securities, wrote an investor note saying iPhone costs could triple.
“The economic pain that will be brought by these tariffs are hard to describe and can essentially take the US tech industry back a decade in the process while China steamrolls ahead,” he wrote, according to Yahoo Finance. “50% China tariffs, 32% Taiwan tariffs would essentially cause a shut-off valve from the US tech landscape and in the process cause every electronic to go up 40%-50% for consumers, iPhones made in the US would cost $3,500 (vs. $1,000), and the AI Revolution trade would be significantly slowed down by these head scratching tariffs that NEED to be negotiated to realistic levels.”
Apple getting rocked with tariff news.
Since the announcement of the tariffs, Apple’s stock price has been hit hard. The iPhone maker lost more than $300 billion in market value in just one day after the reveal, as reported by the Financial Times.
Apple seemingly was making the right moves to avoid dealing with Trump’s tariffs. In recent years, Apple moved its manufacturing from China to plants in India and Vietnam. Both those countries were hit with tariffs ( 27% and 46%, respectively), although Vietnamese leader To Nam is reportedly in talks with Trump on reducing its tariffs. Also, plants in China still handle some iPhone production, although it’s unclear which models.
The iPhone maker is reportedly looking at Brazil as its next place for production, according to 9to5Mac. The South American country received only a 10% tariff from Trump.
It also appeared Apple had gotten on Trump’s good side with its announcement of a $500 billion investment in the U.S. The company expects to open a massive server factory in Houston, a new campus in Austin, and to have some of its Silicon made in Arizona.
