• Source:JND
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Apple is under severe fire after US President Donald Trump reinstated blanket tariffs on items imported from various nations, including China, India, and Vietnam, directly affecting the manufacture of iPhones and potentially skyrocketing prices by up to 43 per cent. Apple, which produces most of its iPhones in China, has so far not received any exemptions from the new tariffs. Chinese-made iPhones now face a 54 per cent tariff. Vietnam and India, other significant production centers of Apple, also face tariffs of 46 per cent and 26 per cent, respectively. Even with Apple's efforts to diversify outside of China through strategy, the new tariffs raise the price of bringing its products into the U.S. market.

Apple shares fell 9.3 per cent, its worst one-day performance since the early COVID-19 collapse in March 2020. Rosenblatt Securities analysts estimate that Apple would have to raise iPhone prices by as much as 43 per cent to entirely cover the expense of these new tariffs. The standard iPhone 16, which now costs 799 USD, potentially costs 1,142 USD. The iPhone 16 Pro Max, now priced at 1,599 USD, may skyrocket to almost 2,300 USD. The budget iPhone 16e, launched with a tag of 599 USD as a low-end model, may now fetch 856 USD.

Customers Could Feel the Squeeze

Apple has not officially reacted to the events as yet. Nevertheless, with demand for smartphones already on the decline, and Apple Intelligence features disappointing pioneer users, experts worry the company will not be able to pass the full weight to customers. "iPhone sales are already struggling," said Angelo Zino, a senior equity analyst at CFRA Research. "Apple will only be able to pass through 5 to 10 per cent of the tariff expense at the moment. They will probably wait until the iPhone 17 release in the fall to implement any significant price hikes."

Get Iphones at Affordable Rates

Consumers who want to acquire a new iPhone or other Apple products at prevailing prices still have a limited window of opportunity. Carriers and retailers are likely to provide aggressive promotions and installment plans in the coming weeks, hoping to sell existing inventory before the new pricing structure comes into effect. Most carriers are expected to promote special trade-in offers and zero-interest EMIs to maintain customer demand, even as Apple adjusts pricing across its range. As the world waits with bated breath for the global tech industry, everyone's eyes are on Apple and whether the world's most valuable brand can weather another geopolitical storm without alienating its loyal fan base.

Also read: Apple Airlifts 600 Tons Of iPhones From India To US In Rush To Beat Trump's Steep Tariff Hike: Report