Thanks to the new tariffs announced by President Trump, the tech industry is going to have a tough time in the market, particularly Apple. According to Reuters, the iPhone could get a drastic price increase of up to 30% or even more.
In case you missed the news, China is one of the countries that got hit with a 34% tariff. Most of the iPhone parts come from these two countries, so Apple is probably going to pay a lot more than usual for the components. And ever since Trump announced the tariff, Apple's shares have gone down by 9.3%, the worst since March 2020.
By taking the calculations of the tariff based on Rosenblatt Securities' analyst's projections, the standard iPhone 16 could cost as much as $1,142 (~RM5K). That's quite a big jump from the original price of $799 or RM3,999 in the Malaysian market. As for the iPhone 16 Pro Max, it could cost around $2,300 (~RM10.1K) if it ever reaches up to 43%.
While Apple has been moving its production line to Vietnam and India, these two countries also got slapped with tariffs of 46% and 26%, respectively. According to Counterpoint Research co-founder Neil Shah, Apple may need to raise its prices by at least 30% just to offset the import duties. And that's on average.
Trump granted Apple an exemption from this when he first became president years ago, but at the time of this news post, no waiver has been given yet. Still, nothing is certain yet, but the future is not pretty. Either way, Apple would have to absorb the extra expenses or pass it on to Apple customers globally.
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