iPhone price increase coming soon

iPhone 16 series on display at an Apple store. Photo: Bloomberg .

Amid tariff uncertainty, analysts say iPhones could become more expensive. But how much that will cost remains an open question.

Based on its latest earnings call, Apple has opted to absorb the cost of tariffs on goods imported into the U.S. But that may not last, especially given Apple’s reputation on Wall Street and the pressure to protect its profit margins.

“Our baseline forecast is that Apple will increase product prices, helping to partially offset the impact of tariffs,” said analyst Srini Pajjuri of Raymond James .

According to the WSJ , the impact of tariffs so far is quite small. In late April, CEO Tim Cook said Apple expected to incur about $900 million in costs arising from tariffs in its third fiscal quarter (ending June).

Wall Street estimates that the figure will leave Apple with a less than 2% increase in cost of goods sold, though that’s not the final figure, as Cook noted that next quarter will have “some unique factors” impacting the situation.

This means that the next phase could see higher costs if tariffs remain in place, according to Apple’s CEO. Additionally, a separate tariff on semiconductors could add to costs.

“Given the prospect of Trump imposing sector-specific tariffs, we conservatively estimate that the additional cost of goods sold (COGS) could double to $900 million in subsequent quarters after June,” said Melius Research analyst Ben Reitzes.

Concerns about Apple’s profit margins in the next period sent shares down nearly 4% after the financial report. The company’s stock fell another 3% on May 5 when The Information predicted that the iPhone 17 Air would have shorter battery life.

Apple's market capitalization has fallen by more than $350 billion since US President Donald Trump announced tariffs on April 2. Most other major tech stocks have recovered, according to the WSJ .

Apple itself is considering some moves to offset the impact of tariffs. CEO Tim Cook said most of the devices imported into the US in the second quarter will come from India and Vietnam.

Still, Apple faces challenges in moving much of its supply chain out of China, especially as the company looks to innovate with thinner iPhone designs and foldable screens, which require complex manufacturing processes.

Average iPhone selling price from fiscal year 2025. Photo: WSJ .

In the long run, price increases could be a possibility for Apple, an American company that relies on foreign-assembled hardware to generate the bulk of its revenue.

Over the years, Apple has successfully increased the average selling price of iPhones, although the high-end model has kept the starting price of $1,000 since 2017.

Of course, Apple still made some changes to the storage capacity and introduced a more expensive version. According to data from Visible Alpha , the average selling price of an iPhone was $755 before the launch of the iPhone 11 Pro (in 2019). After 3 years, that number is $963 .

However, in the context of tightening spending, users may not be interested when smartphones can increase in price beyond the $1,000 mark.

In the US alone, major carriers like Verizon and AT&T have said they will not subsidize tariffs on packages sold with smartphones. In other words, users can feel the prospect of an iPhone price increase coming.

Source: https://znews.vn/se-den-luc-iphone-tang-gia-post1551584.html