Due to tariffs, iPhone prices in the U.S. may increase by 12% to 43%, leading to a consumer buying spree.

Taiwan • Business • 04/09 10:42
Due to tariffs, iPhone prices in the U.S. may increase by 12% to 43%, leading to a consumer buying spree.

On April 9, 2025, President Trump of the United States imposed a 104% tariff on Chinese imports, creating cost pressures for Apple Inc. If Apple decides to pass these costs onto consumers, iPhone prices could increase by 12% to 43%, with some high-end models seeing an increase of up to $350. This policy has sparked a buying frenzy among American consumers, resulting in a surge of crowds at Apple stores. Apple has yet to announce any price adjustments, but it may absorb some costs and pressure suppliers to reduce prices to maintain its profit margins. If the tariffs continue, price adjustments might become unavoidable.

Key Updates

04/09 15:11

Trump's new tariff policies have triggered global market turmoil: U.S. stocks plunge a 12%, bond market experiences volatility, retaliatory tariffs are escalating.

On April 9, 2025, President Trump of the United States imposed a 104% tariff on Chinese goods and extended it to multiple countries, which sparked global trade tensions. China and the European Union quickly retaliated, leading to a sharp decline in the U.S. stock market, with the S&P 500 index dropping 12.1%. The U.S. bond market experienced turmoil, and Deutsche Bank warned that the Federal Reserve might need to initiate emergency quantitative easing. The Nobel Prize-winning economist Paul Krugman warned that this policy could trigger a financial crisis. Trump called on investors to stay calm, saying it's a good time to buy.

04/09 14:43

The Trump administration imposed a 32% tariff on goods from Taiwan, devastating the export industry.

On April 9, 2025, the Trump Administration imposed a 32% tariff on Taiwanese goods, severely affecting Taiwan's export economy, particularly the traditional manufacturing and information and communication technology (ICT) industries. Pre-orders for the Nintendo Switch 2 were delayed due to U.S. tariff policies, with sales estimates revised down to 15 million units from previous projections, priced at $449.99 and scheduled for release on June 5. This event highlights the disruptions in the global supply chain.

04/09 14:11

US-China Trade War Escalates: Trump Announces 104% Tariff Increase, China Responds, European Economic Forecast Revised Downward, Swiss Watch Exports Affected

On April 9, 2025, U.S. President Donald Trump announced a 104% tariff on all Chinese imports, and China retaliated by increasing tariffs on U.S. goods to 84%. This action impacted the global economy, as Italy and Spain consider lowering their economic growth forecasts, and Swiss watch exports suffering. Italian Prime Minister Giorgia Meloni plans to visit the U.S. on April 17 to meet with Trump to seek ways to ease trade tensions. The U.S. has already initiated trade negotiations with multiple countries to try to resolve the trade conflict.

04/09 13:13

Trump's announcement of a tariff policy has caused market turbulence, but individual investors are still holding firm in the market.

On April 2, President Trump of the United States announced the imposition of "reciprocal tariffs" on multiple countries worldwide, which caused turmoil in the financial markets, leading to the S&P 500 index dropping by more than 12%. Despite this, many wealth management firms noted that most individual investors stayed in the market, and no large-scale sell-off was observed, particularly noting that young investors seized the opportunity to increase their investments. Advisors suggest increasing cash allocations to manage uncertainty and to avoid emotional trading.

04/09 11:38

Impact of US Tariff Policy on the Display Industry: Increased Pressure to Restructure Asian Supply Chains, Rising AMOLED Materials Costs

On April 9, 2025, the United States implemented a reciprocal tariffs policy, impacting the global supply chain and hitting the display industry. A TrendForce report indicates that optical films and AMOLED materials for displays are being taxed, putting pressure on the Asian supply chain to restructure. China imposed a 34% tariff on U.S. goods, impacting U.S. suppliers' exports to China. The end market might see a drop in demand for TVs and laptops due to increased costs and falling consumer confidence.

04/09 10:42

Due to tariffs, iPhone prices in the U.S. may increase by 12% to 43%, leading to a consumer buying spree.

On April 9, 2025, President Trump of the United States imposed a 104% tariff on Chinese imports, creating cost pressures for Apple Inc. If Apple decides to pass these costs onto consumers, iPhone prices could increase by 12% to 43%, with some high-end models seeing an increase of up to $350. This policy has sparked a buying frenzy among American consumers, resulting in a surge of crowds at Apple stores. Apple has yet to announce any price adjustments, but it may absorb some costs and pressure suppliers to reduce prices to maintain its profit margins. If the tariffs continue, price adjustments might become unavoidable.

04/09 10:11

In the year 2025, the escalation of the trade war between the US and China caused market turmoil: US Treasury bonds plummeted, bond yields soared, and the stock market and the dollar both fell.

On April 9, 2025, the trade war between the US and China escalated as the United States imposed a 104% tariff on goods from China, and China responded with an 84% retaliatory tariff, leading to turmoil in global financial markets. The US Treasury market experienced a sell-off, with the 10-year Treasury yield breaking past 4.5% and the 30-year surpassing 5%, marking the largest three-day rise since 1982. US stocks and the dollar both declined, and hedge funds unwinding high-leverage basis trades triggered a bond market crash, spreading panic to global bond markets and safe-haven assets. The demand for US Treasuries weakened, and market confidence took a hit.

04/09 09:09

China Publishes White Paper on China-US Economic and Trade Relations: Criticizes US Unilateral Policy, Urges Dialogue to Resolve Disputes

On April 9, 2025, China's State Council Information Office released a white paper titled "China's Stance on Various Issues in China-U.S. Economic and Trade Relations," criticizing the United States for its unilateral and protectionist measures, accusing it of violating international trade rules and disrupting the economic and trade relations between China and the U.S. China reiterated that the economic and trade relations between China and the U.S. are mutually beneficial and urged the U.S. to resolve differences through dialogue on equal terms, and stated that if the U.S. escalates its restrictive measures, China will respond with countermeasures.

04/09 09:09

Trump's New 2025 Tariff Policy Sparks Global Business Community Backlash: Emerging Inflation Risks and Logistics Crisis

U.S. President Donald Trump initiated a global reciprocal tariff policy on April 9, 2025, imposing at least a 10% tariff on imported goods, with tariffs on Chinese goods reaching as high as 104%. This move has triggered global market turmoil, with Wall Street business leaders, such as JPMorgan Chase CEO Jamie Dimon, opposing it and warning of risks such as inflation and investment stagnation. Taiwanese companies are facing challenges like having their export containers rejected. The UK, Japan, Vietnam, India, and Cambodia might quickly reach tariff agreements, which could potentially benefit companies like Nike.

04/09 09:09

Impact of US Tariff Policy on Taiwan: 11 Products Could See Price Increases, Sock Industry Calls for Government Subsidies

On April 9, 2025, U.S. President Donald Trump imposed a 104% tariff on Chinese goods and a 32% tariff on goods from Taiwan and other countries, impacting Taiwan's export and retail sectors. Costco's Taiwan branch is under pressure to raise prices on 11 items, and sock manufacturers in Changhua have been notified by American clients to halt shipments, calling on the government to negotiate tax cuts and offer subsidies. The Taiwanese government has assembled a negotiation team to travel to the U.S. for discussions, and the industry is looking forward to concrete relief measures.

Potential Price Increase and Model Variations for iPhone

According to an analysis by UBS Investment Research, the current price of the iPhone 16 Pro Max (256GB) is $1,199. If the new tariff costs are fully reflected, the price could increase by $350, reaching $1,549, an increase of approximately 29%. In contrast, the iPhone 16 Pro (128GB) of the same series, if manufactured in India, would be subject to a lower tariff of 26%, resulting in an estimated price increase of only 12%, or about $120.

A report from Rosenblatt Securities indicates that if Apple chooses to pass all tariff costs onto consumers, iPhone prices could rise by as much as 43%. PhoneArena further points out that for a 1TB iPhone 16 Pro Max, the price could soar from $1,599 to $3,200.

Tariff Policy and Timing

The trigger for this price increase is the "reciprocal tariff" policy implemented by the Trump administration starting April 9, 2025, imposing tariffs as high as 104% on Chinese imports. Since about 90% of iPhones are assembled in China and then exported to the U.S., this policy has a significant impact on Apple.

According to Bloomberg, Apple is currently selling inventory previously imported to the U.S., and is expected to feel the impact of tariff pressure starting in the fourth fiscal quarter, which begins in July 2025. This means that if Apple chooses to adjust prices, changes could occur as early as summer.

Consumer Reaction and Market Phenomenon

Facing the potential risk of price increases, U.S. consumers have started purchasing iPhones in advance. According to Bloomberg, Apple store employees have noted that "almost every customer is asking if prices are about to rise." Although the crowds at Apple Stores are not as large as during new product launches, they have reached levels typical of the holiday shopping season.

Additionally, to replenish U.S. market inventory before the tariffs take effect, Apple urgently airlifted five planes of iPhones from China and India to the U.S. at the end of March. This inventory is expected to support supply for several months, but once depleted, the pressure for price adjustments will emerge.

Manufacturing Location and Cost Differences

To reduce reliance on China, Apple has been actively expanding its production capacity in India in recent years. According to The Wall Street Journal, Apple plans to assemble 25 million iPhones in India by 2025, which, if fully supplied to the U.S. market, could meet about 50% of U.S. demand.

However, if production is entirely moved back to the U.S., costs would skyrocket. Wedbush Securities analyst Dan Ives points out that an iPhone originally priced at $1,000 could cost as much as $3,500 if manufactured in the U.S. This is due to the lack of a complete electronics supply chain in the U.S. and significantly higher labor costs compared to Asia.

Apple's Response Strategy

Apple has not yet officially announced an increase in iPhone prices, but according to Bloomberg, Apple may choose to absorb part of the tariff costs and exert pressure on suppliers to lower component prices to maintain its profit margins. However, if tariffs continue to rise, Apple may eventually pass some of the costs onto consumers.

According to Forrester analyst Dipanjan Chatterjee, Apple has strong brand loyalty, which means that even with price increases, consumers may still choose to buy. However, this also means that Apple must carefully balance its pricing strategy to avoid affecting sales and market share.

References

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