How Trump's Tariffs Could Inflate iPhone Prices by 10%: Bank of America Weighs In

Trump's Tariffs May Increase iPhone Prices by 10%

Overview:

Bank of America estimates that President Trump's import tariffs could result in a minimum 10% tariff on Apple products, including iPhones and other devices. While Apple has previously managed to earn exemptions or mitigate the impact by moving manufacturing to different locations, these strategies may not suffice this time.

Potential Impacts:

• Price Hike: A 9% price increase for iPhones and other devices would be necessary to avoid significant losses, according to Bank of America. This could drive consumers to switch to Android, making it harder for Apple to win them back.
• Cost Absorption: Apple could choose to absorb the cost initially to maintain customer loyalty, but this would result in a 3% drop in earnings per share (EPS) for calendar year 2026, equating to a loss of 26 cents per share.
• Partial Price Increase: Raising prices by only 3% would still lead to a 2.4% decline and a 21-cent EPS decrease.

Analysts' View:

Bank of America analyst Wamsi Mohan believes the tariffs are "manageable," but Apple will likely continue lobbying for exemptions to mitigate the impact.