The price of iPhone 16 models in the United States will rise significantly due to the new 84% tariff imposed by China. Based on calculations, the current $1,199 iPhone 16 would see a price increase of $1,007.16, bringing the total cost to $2,206.16.
Impact on Different iPhone 16 Models
The price hikes will affect the entire iPhone 16 lineup:
- The basic iPhone 16, currently priced at $799, could rise to around $1,500
- The premium iPhone 16 Pro Max could jump from $1,199 to approximately $1,550 or higher
- The top-end iPhone 16 Pro Max with 1TB storage might increase from $1,599 to as much as $2,300
Why This Is Happening
Most iPhones are manufactured in China, making them subject to these new tariffs. When a tariff is applied, Apple must either:
- Absorb the extra costs themselves
- Pass the costs on to customers
- Move production to other countries
Analysts believe Apple will likely pass most of these costs to consumers, resulting in the sharp price increases
What Experts Are Saying
“The whole China tariff thing is playing out completely contrary to our expectation,” said Barton Crockett, an analyst at Rosenblatt Securities
UBS analyst Sundeep Gantori notes there is “considerable uncertainty regarding how the increased cost burden will be managed”
These price increases could potentially hurt Apple’s sales in the US market, which is one of its largest. The company has lost over $675 billion in market value recently as investors worry about these tariff impacts.
Some experts predict that Apple might hold off on major price increases until the iPhone 17 launch later this year, when they typically implement planned price hikes
Did apple really send 3 planes full of iphones after the Tariff situation?
Yes, Apple did send three planes full of iPhones to the United States, but this happened in late 2023, not recently. This was old news and had nothing to do with the current tariff situation between China and the U.S.
At that time, Apple shipped the iPhones to the U.S. to prepare for high demand during the holiday season. They wanted to make sure there were enough iPhones available for customers, especially since there were concerns about supply chain delays.
This shipment happened long before China imposed the recent 84% tariff. It was a precautionary move by Apple back then and is not connected to the current price rise or trade tensions.
