If theiPhone used to be considered a luxury, now it will be even more so. The new tariffs taxes from Donald Trump they risk making theApple smartphone purchase almost unaffordable. Why? Because of the duties applied on components and assembly in countries like China, theiPhone could cost up to 43% more (with the top of the range exceeding 2.500 euros in Italy), a real bloodlettingor for consumers' pockets. And things are no better for iPads, AirPods and other Apple devices, which will also suffer price increases.
Trump's Tariffs Overwhelm Apple
The tariff policy desired by the United States will have a heavy impact on technology products coming from China, including the iPhone. Although Apple has tried to diversify its production moving part of theassembly in Vietnam and India, these countries have also been hit by tariffs imposed by the United States. As a result, production costs will increase significantly, which will inevitably affect the final price of the devices.
According to the Wall Street Journal, cost of hardware components of the iPhone, between materials and assembly, amounts to about $550 per unit. With the application of the 54% tariff on Chinese products, the production cost for Apple sale at around 850 dollars for each device. An increase that significantly reduces the company's profit margins.
But even if Apple decides to move production to the United States, the costs would not be reduced. In fact, while in China theassembly While the device costs about $30 per unit, in the United States the cost could rise to $300, making the idea of producing iPhones entirely in America economically unsustainable.
iPhone Prices: A Bloodbath Coming
Apple currently sells over 220 million iPhones each year, with its main markets being the United States, China and Europe. According to Rosenblatt Securities forecast quoted by Reuters,iPhone 16 basic, currently selling for $799 in the United States, could rise to $1.142 with an increase in 43%The most advanced model, the iPhone 16 Pro Max, currently sold for $1.599, could cost more than $2.300.
Also cheaper devices will not escape these increasesThe iPhone SE, currently selling for $599, could rise to $856, while the iPhone 16e, which starts at $799, could reach $1.142.
How much will the iPhone cost in Italy?
If iPhone prices in the United States are set to rise dramatically, even in Italy the situation is not the best. In fact, the Italian market, where Prices are already higher than in the US, risks undergoing even more significant increases. For example, the iPhone 16 Pro Max model from 256 GB, currently sold in Italy at 1.489 euros, could increase by 43%, bringing its price to around 1.757 euros. But the situation becomes even more complicated when considering theItalian VAT 22% e other local taxes, such as the Siae fair compensation. In this case, the final price could easily exceed 2.500 euros, a significant increase that risks making the purchase of the iPhone “almost inaccessible” for many Italian consumers.
And looking to the future, with the release of new models in 2025 (equipped with more AI), prices could be even higher.
It should be emphasized that, at the moment, the Forecasts relating to price increases mainly refer to the US market, but it is not difficult to imagine that also in Europe, and in particular in Italy, the impact will be considerable.
All Apple Devices Affected, Increases for iPad, Mac, and AirPods
The price increase is not just about iPhones. Even the other Apple devices, like AirPods, iPads, and iMacs, will suffer similar increases. For example, AirPods may experience a increase up to 39%, going from the current 200 euros to around 280 euros. Similar increases also for iMac and iPad. With these increases, the risk is that consumers may look for cheaper alternatives, putting Apple brand loyalty at risk.
A boost to the competition, Samsung can take advantage of it
US tariff policy could favor Apple's competitors, as Samsung. The Korean company produces many of its devices directly in South Korea, where tariffs are lower (25%) than those applied to China or India. This would effectively allow it to keep prices more competitive, putting Apple at a disadvantage.
In particular, in Europe, where Apple devices are historically more expensive than in the US, Samsung could recover ground, attracting consumers with devices similar to Apple's but at a lower price.
Apple’s Strategy: Absorb or Pass on Costs?
La Apple's response to these price increases will be crucial for the future of the brand. The company may decide to absorb some of the additional costs so as not to damage demand too much, but considering the relatively high profit margins, it is more likely that pass these increases on to consumers.
In 2016, during Trump's first term, Apple managed to obtain exemptions from tariffs. The future strategy of the Cupertino company will be crucial: Apple will have to decide whether to increase prices further or find other ways to mitigate the impact of these increases.
iPhone, rush to buy?
In the short term, meanwhile, Apple could record a real boom in sales, having a rush to buy its products before the price increases become effective. It is not at all a given, in fact, that consumers, worried about the price increases, will hurry up and buy iPhones and other Apple devices before they become too expensive. For those who are considering a purchase, it is therefore better to hurry: buying now could prove to be a profitable move both to avoid future price increases and to secure the devices before they run out.
