Apple May Raise iPhone Prices by 9% to Offset U.S. Tariffs

Analysts predict price hikes across Apple's product lineup as the company grapples with increased costs from Trump administration tariffs.

Bank of America analyst Wamsi Mohan suggests Apple may increase product prices by 9% to counter the financial impact of U.S. tariffs on Chinese imports.
The tariffs, which impose a 10% charge on imports from China, could lead to a 3.1% earnings decline if Apple absorbs the costs without raising prices.
A 9% price increase is estimated to offset both tariff costs and potential sales declines, keeping Apple's financial performance stable.
The impact of higher prices could see some customers opting for competitor devices, potentially reducing Apple's sales volume by 5%.
Apple recently introduced the $599 iPhone 16e, replacing the $429 iPhone SE, signaling a broader trend of rising prices across its product lineup.