The following is an estimate of how much iPhones may cost if tariffs were implemented in the United States.
The following is an estimate of how much iPhones may cost if tariffs were implemented in the United States.
Recent US taxes on Chinese and Vietnamese imports have placed major electronics manufacturers like Apple in a tough situation, and increased iPhone pricing may soon follow. Since Apple still assembles most iPhones in China, high import levies of 54% on Chinese products and 26% on Indian goods harm its global supply chain.
Cost to Make iPhones
Based on iFixit and TechInsights data, The Wall Street Journal estimates that Apple spends $580 on components and assembly for a 256 GB iPhone 16 Pro. The back camera system ($126.95), A18 Pro chip ($90.85), and display ($37.97) cost the highest. With the new 54% tax, Apple’s costs might rise to $847, a $267 increase before profit margins.
Retail Price Rise?
The US price of the 256 GB iPhone 16 Pro is $1,100. The new tariff affects production costs, not retail prices, but Apple’s internal expenditures rise, lowering profit margins. Apple has tolerated tiny tariff hikes like the 10% tax without raising pricing. The new rate is more than five times higher, so Apple may not bear the whole impact. Even if Apple absorbs 50% of the price bump, the retail price might exceed $1230.
How Apple Responds
Apple has been storing US inventory to defer price rises until the iPhone 17’s September arrival. The corporation is also increasing manufacturing in India and Brazil. Despite diversification, Apple still manufactures most iPhones in China, increasing its tariff risk.
