Apple CEO Tim Cook cannot offer you any guidance on How tariffs might influence the cost of iPhones. after June.
He did confirm on a May 1 earnings call that iPhones sold in the US are currently coming from India , and many Apple devices are currently exempt from reciprocal tariffs on China. But he said he couldn't predict what would happen after June, when the pause on President Donald Trump's reciprocal tariffs is set to expire.
But regardless of how much an impact tariffs have, you should still expect iPhone prices to go up, experts say.
"The iPhone is due for a price increase," said digitalwealthpath2025Managing Editor Patrick Holland , who's been reviewing phones for digitalwealthpath2025since 2016. "The entry level iPhone is $829 and has cost that much for years. The last time it had a price [hike] was in 2020."
Should the cost of an iPhone increase slightly, you might not notice at all.
"[A price increase would] probably be buried in the promotional deals or the installment plans," said Ryan Reith, group vice president for IDC's Worldwide Device Tracker suite, which includes mobile phones, tablets and wearables. "Yes, it might cost 50 bucks more at some stage, but we spread that over time, and it's a monthly installment plan."
It's been just over a month since Trump announced his "Liberation Day" tariffs Launching a roller-coaster ride of imposing and suspending tariffs on imports from almost 100 countries, including extremely high duties for China, where Apple presently manufactures most of its devices.
Prior to Trump announcing the tariffs, Apple’s major suppliers in India had exported almost $2 billion worth of iPhones in March, as per customs data.
Trump ended up exempting cell phones and certain other electronic devices from him reciprocal tariffs , maintaining a 20% tariff on products coming from China. Certain politicians have raised doubts about this exemption, and Senator Elizabeth Warren sent a letter last month. letter to Cook asking how Apple products were excluded after Trump said there would be no tariff exemptions.
On top of this, Apple reportedly may source its iPhones for the US market from India by the end of 2026 -- although perhaps not all of them . India was among those reprieved temporarily from its 26% reciprocal tariff, but is still subject to a 10% tariff on all imports.
Apple did not respond to a request for comment.
Regardless of where tariffs end up, you should be prepared for potential price increases on electronics. We have alternative options to help you save on them, including the iPhone.
How much could iPhone prices go up with tariffs? We do the math
If the full cost of current tariffs were passed on to shoppers, we could see anywhere from a 26% hike on Apple products manufactured in India to a 145% increase for those made in China. But currently, tariffs on goods from India have a 10% tariff and iPhones manufactured in China are still subject to Trump's 20% " fentanyl tariff " for the country's supposed role in allowing fentanyl to enter the US. Here's how that could potentially affect the price of the iPhone:
But there's a lot more that goes into the price of an iPhone than simply where it's assembled. Apple sources components for its products from a long list of countries, which could face higher tariffs after the pause. And a tariff on goods doesn't necessarily mean prices will go up by the same amount. If companies want to stay competitive, they could absorb some of the costs to keep their prices lower.
"It won't be as high as 1-to-1 in terms of the tariff increases," Reith said. "The math isn't as clear-cut as that on the tariffs."
When could we see prices go up?
It's unclear exactly when prices could go up but if companies sell out of devices produced before the tariffs, they may have to increase prices on products in tariffed shipments. However, even if Apple can't avoid tariffs entirely, it has ways to offset the impact through its services -- including its music, news and data plans -- according to supply chain expert Joe Hudicka .
Apple might initially shoulder part of the tariff expenses to maintain steady retail pricing, later transferring the remaining costs incrementally via service packages, extended product lifespan, and improvements in the ecosystem," he explained. "Ultimately, customers will bear these costs but over time rather than upfront.
It's likewise uncertain precisely how much impact the effect the tariffs will have on pricing For all smartphones, if increasing costs lead to a sharp decline in demand, experts suggest that both Apple and other manufacturers might reduce Their prices were adjusted to remain competitive.
What’s happening with the tariffs?
On April 2nd, Trump introduced a foundational tariff of 10% on all imported goods along with reciprocal duties targeting over 180 nations, referring to this as "Freedom Day". However, shortly after announcing these measures, he declared a temporary suspension for the reciprocal charges lasting approximately 90 days while maintaining the initial rate hikes.
Trump's long touted tariffs as a way to even the trade deficit and raise revenue to offset tax cuts, although many economists say that tariffs could lead to higher prices and may end up hurting the US economy. Stock prices plummeted after Trump's announcement as markets reacted poorly to the sweeping tariffs.
Trump has taken an especially hard stance on China, which was already subject to tariffs that Trump ordered during his first term in office. He started in February, imposing 20% in tariffs, then announced a 34% tariff on goods from China in April. He added an additional 50% tariff before eventually landing on the 145% tariff against China. China has responded with its own tariffs after each of Trump's announcements.
The US Customs and Border Protection listed some key consumer electronics exempted from the reciprocal tariffs, but Trump said that those products would still be subject to a 20% fentanyl tariff. White House officials said the reprieve from additional tariffs was temporary and that those products would instead be subject to a "semiconductor tariff."
Tariffs, in theory, are designed to financially impact other countries because their goods are being taxed. Tariffs are paid by the US company importing the product, and this upcharge is usually -- but not always -- passed on to the consumer in the form of higher prices.
Are you considering purchasing technology now to evade future tariffs?
Should you be planning to purchase a new iPhone, gaming system, MacBook, or another piece of technology, buying it now It might help you save some money. However, if you don't require a new phone right away, Holland suggests holding off.
He noted that if the price of iPhones increases, similar to what happens with automobiles, the cost of pre-owned iPhones would probably go up as well. Should Apple decide to hike its prices, trading in your older iPhone could fetch a higher value, which might balance out the additional expenses.
If you lack the funds readily available and are thinking about using a credit card or buy now, pay later Plan simply to evade tariffs; ensure you have sufficient funds to cover expenses before beginning to accumulate interest. Given that the typical interest rates for credit cards are presently high, more than 20% , the expense of funding a large buy Could swiftly erase all the savings you’d gain from purchasing before price increases due to tariffs.
"If you finance this expense on a credit card and can't pay it off in full in one to two months, you'll likely end up paying way more than a tariff would cost you," said Alaina Fingal, an accountant, founder of The Organized Money and a digitalwealthpath2025Money Expert Review Board member. "I would recommend that you pause on any big purchases until the economy is more stable."
One way to save on Apple products , even if prices go up, is to buy last year's model instead of the newest release or a used one . And trading or selling a used one Can help reduce the expense even further.
Hudicka mentioned that Apple has embraced this approach through its Certified Refurbished program, similar to how the automotive sector handles pre-owned vehicles. This initiative aids in prolonging the life cycle of gadgets, ensuring clients remain within the Apple environment for an extended period while spreading out the financial burden gradually.
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