Analysts are nonetheless attempting to calculate the affect of tariffs on the US costs of electronics with iPhones sometimes getting used for example. Yesterday, WSJ calculated that the Invoice of Supplies for a 256GB iPhone 16 Professional can go up by $300. Now UBS has a report that exhibits the worst-case situation – the worth improve for a 1TB iPhone 16 Professional Max at retail.
Proper now, that 1TB mannequin prices $1,600. Earlier estimates claimed that the worth will go as much as $2,300 – these estimates recommended will increase of round 40% for all Apple merchandise made in China.
Nonetheless, UBS’s report calculates {that a} 1TB iPhone 16 Professional Max manufactured in China might be offered for $2,062 – a 29% improve over the present value. This calculation assumes that the tariff for China stays on the present 54%. Nonetheless, President Trump has threatened tariffs as excessive as 104% as a response to China’s retaliatory tariffs.
Apple additionally manufactures iPhones in India, which might be topic to a 26% tariff if imported into the US. Because of this a $1,000 iPhone 16 Professional (128GB) would as a substitute value $1,120, a 12% improve. Remember the fact that tariffs aren’t utilized to the retail value however slightly to the worth paid by Apple to its manufacturing companions (this is the reason it will be a 12% improve slightly than 26%).
The present costs of iPhone 16 Professional and 16 Professional Max
Vietnam – the place Apple manufactures the Watch Extremely 2 – is topic to a 46% tariff and the present $800 value might go up by 19% to $950. All of that is assuming that Apple passes on the price improve attributed to tariffs to shoppers as a substitute of taking successful to its revenue margin prefer it did earlier when Trump launched a ten% tariff on China. It’s not clear which path Apple will take as soon as its stockpiled stock runs out.
There are different prices that the UBS report considers – AI servers in-built Taiwan could be topic to a 27% value improve. Now, shoppers don’t purchase AI servers straight, however these are essential to Apple’s push for AI on iPhones, Macs and its different product traces.
