In a recent income report call to investors, Apple CEO Tim Cook revealed that he believes the Trump administration's tariffs will increase Apple's spending by about $900 million in the second quarter of 2025, according to The Street.
According to analysis by experts in CNET, if all of the tariff costs are passed on to consumers, the price of Apple products made in India could increase by 26%, and products made in China could increase by 145%.
Regardless of where the iPhone is manufactured, Apple continues to source iPhone components from some places such as Japan and Taiwan (China). If suppliers from these places are subject to additional tariffs, Apple's costs could be even higher.
While it is unclear when prices may increase, if companies sell all the devices manufactured before Trump's tariffs take effect, technology companies may have to increase the prices of products in the taxable shipment, CNET said.
The fact that Tim Cook has not yet provided updated information about the iPhone price increase shows that Apple is still considering factors and evaluating its options.
Supply chain expert Joe Hudicka said: " Apple may absorb some of the tariff costs from the beginning to keep listed prices stable, then gradually pass the rest to consumers through service packages, device life and ecosystem upgrades. Consumers will still pay, but not all at the same time."
The Street said that as Apple faces high costs from tariffs, prices look set to increase even more.
But CNet said that if price increases reduce demand, Apple and other manufacturers may reduce prices to compete.
