Tariffs Hit iPhones: Skyrocketing Costs for Consumers

U.S. tariffs could cause a significant price hike for iPhones, with increases up to 43%. Most iPhones are made in China, now facing a 54% tariff. Apple might pass costs to consumers, potentially impacting sales and giving competitors like Samsung an edge in the smartphone market.

The beloved iPhone, a staple of modern technology, is set to become significantly more expensive following the imposition of new tariffs by the U.S. government. Analysts on Thursday warned that consumers might see costs rise by 30% to 40% due to these tariffs, impacting Apple's global trade strategy.

Currently manufactured predominantly in China, iPhones are hit with a 54% tariff, which could compel Apple to either absorb the costs or pass them on to buyers. The financial markets reacted swiftly, with Apple shares plummeting more than 8%, their steepest decline since September 2020.

Despite attempts to obtain exemptions, Apple faces a daunting prospect of increasing smartphone costs, potentially driving customers towards less affected competitors such as Samsung. Experts suggest that negotiations between Apple, China, and the White House are likely to unfold as tensions rise.

(With inputs from agencies.)