The Impact of Tariffs on iPhone Prices: A Looming Threat for Apple

U.S. tariffs may force Apple to raise iPhone prices significantly, impacting demand and potentially giving Samsung an edge. With most iPhones made in China, facing a 54% tariff, Apple faces decisions on whether to absorb costs or pass them to consumers. Analysts predict substantial financial implications.

Apple's iPhone prices may soon climb due to new U.S. tariffs, with China-made phones facing a 54% hike. This situation is putting Apple's financial strategies at a crossroad, analysts reveal, as it contemplates either absorbing costs or transferring them to consumers.

The company's stock fell by more than 8%, influenced by these tariff impositions, marking a significant setback since September 2020. Analysts at Rosenblatt Securities warn of possible price increases of up to 43% if Apple decides to pass the tariffs onto customers.

The price hikes could damage iPhone demand, with competition like Samsung potentially gaining an advantage due to lower tariffs. Experts also highlight the challenge for Apple in raising prices significantly, as demand for recent models has faltered due to perceived underwhelming innovations.

(With inputs from agencies.)