A $2,300 iPhone? The recent tariffs make that a possibility

By Patrick Hearn Published April 4, 2025

Apple’s iPhone might see a serious price hike in response to the recent tariffs, according to a report from Rosenblatt Securities. Analysts suggest the tariffs could result in a price increase of anywhere from 30% to 40%, if Apple chooses to pass the increased costs on to consumers. Neil Shah, an analyst from Counterpoint Research, suggests Apple would need to increase prices by 30% on average, while Rosenblatt analysts say the number is closer to 43%.

To illustrate what that might look like, take a look at the current $799 price point for the iPhone 16. If its price increases by 43%, it would come out to around $1,142. On the other hand, the iPhone 16 Pro Max — currently priced at $1,599 for its base model — could jump to just under $2,300 ($2,286.57, to be exact.)

Apple faces a difficult choice. Increasing the price of its phones to cover the cost of tariffs would result in fewer sales, as it would become more of a luxury item that those with limited budgets couldn’t afford. A report from earlier this year showed that more people are buying used iPhones than new, and an increase in price would only further that trend.

Even the current cheapest iPhone, the iPhone 16e, would see a tremendous hike. It starts at $599, but would jump to more than $850 per unit. Amid the controversy surrounding Apple’s failure to fulfill its promises of a smarter, improved Siri, iPhone sales have floundered.

China responded to the tariffs by announcing reciprocal tariffs of 34%. Considering that many iPhones are still manufactured in China, alongside necessary components, this will result in even further price hikes. The end result of the tariffs isn’t clear, but it seems obvious that the price of electronics and other consumer goods will increase by a not-inconsequential amount.