iPhone 17 Pro Predicted to Break $2000 Barrier Due to New Tariffs

iPhone 17 Pro Predicted to Cost Over $2000 Due to Trump Tariffs

On April 2, 2025, also known as 'Liberation Day' by President Trump, new tariffs were imposed on imports from countries in Apple's supply chain. These tariffs include a minimum 10% tariff on all goods and a 54% tariff specifically for Chinese imports. The implications are significant for Apple, leading to potential price increases across its product lines.

Impact on iPhone Prices

• Base Model iPhone 16: Expected to increase from $799 to over $1140.
• iPhone 16 Pro Max (1TB): Projected to rise from $1599 to nearly $2300.
• iPhone 16e: Anticipated to jump from $599 to over $850.

Analyst Predictions

• Rosenblatt Securities projects a 43% price increase for iPhones, Apple Watches, iPads, and AirPods to offset tariff costs.
• Counterpoint Research suggests a more conservative 30% increase.
• CFRA Research believes any price hike above 10% will be challenging due to consumer sentiment but expects a significant adjustment by the iPhone 17 launch in September 2025.

Manufacturing Context

• China: Accounts for about 80% of Apple's production capacity, making it highly vulnerable to tariffs.
• India: Assembles around 10%-15% of iPhones, with a target to reach up to 20% by the end of 2025. Imports from India face a 26% tariff, lower than China's.

Tariff Details

• The tariffs are imposed through the International Emergency Economic Powers Act (IEEPA), making it difficult for Apple to secure exemptions without direct presidential intervention.

Financial Impact

• Rosenblatt Securities estimates these tariffs could cost Apple up to $40 billion. Negotiations with the White House may be challenging, given President Trump's stance on no exemptions.