iPhone prices may reach RM10,000 due to Trump's tariffs

SHAH ALAM – iPhone users around the world may need to brace for a significant price hike following a tariff decision by United States President Donald Trump targeting certain countries, which could cause iPhone prices to surge between 30 to 43 per cent, Reuters reported recently.

A large portion of iPhones sold in the US market were still manufactured in China, which now faced a 54 per cent tariff.

If this tariff remained in place, Apple faced a difficult decision—either absorb the cost or pass it on to consumers.

Reports quoting Rosenblatt Securities analysis revealed the cheapest iPhone 16 model currently priced at USD799 (RM3,600) in the US market could rise to as much as USD1,142 (RM5,130) if the cost was passed on to users.

The iPhone 16 Pro Max, which features a 6.9-inch display and 1 terabyte of storage priced at USD1,599 (RM7,180), could see its price exceed USD2,300 (RM10,330).

Apple shares dropped by 9.3 per cent on Thursday, marking the biggest decline since March 2020.

Apple, which sold over 220 million iPhones annually, faced challenges to maintain competitiveness as these import tariffs directly affected production costs.

Analysts also noted that the company might be forced to raise prices, particularly after the iPhone 16e—which launched in February at USD599 (RM2,690)— was projected to spike to USD856 (RM3,850).

Previously, Trump had imposed high tariffs on many products imported from China to encourage American companies to shift production to other countries like Mexico or the United States itself.

While Apple had been exempted from such tariffs in the past, this time Trump has not granted any exceptions to the world’s largest tech company.

“This China tariff issue goes against our previous expectations that Apple would be treated more leniently, as it was before,” said Barton Crockett, an analyst at Rosenblatt Securities.

Although some iPhone production had been moved to countries like Vietnam and India, tariffs on both countries would also impact iPhone retail prices.

Vietnam was subject to a 46 per cent tariff, while India faced a 26 per cent tariff. To offset these costs, Apple was expected to raise prices by at least 30 per cent on average, according to Counterpoint Research.

This steep price increase risks dampening demand for iPhones, giving a potential advantage to Apple’s main competitor, Samsung Electronics, which was based in South Korea—a country facing lower tariffs compared to China, where most iPhones were produced.

Rosenblatt Securities forecasted that Apple could suffer a loss of USD40 billion (RM179 billion) if these tariffs continue and discussions between Apple, China and the White House were expected in the near future.

Still, analysts suggest that the upcoming iPhone 17, slated for release this fall, might help Apple weather the storm.

“While it’s hard to imagine Trump causing damage to an American icon like Apple, this situation is indeed a serious challenge for the company,” Crockett added.