Tariffs Threaten Apple's $999 iPhone Price Point in the U.S. [Gurman]

Apple could finally be forced to make price increases to iPhones in the United States due to recently announced tariffs; however, the company does have multiple ways to cope with changing trade realities, according to a new report from Mark Gurman. In a newsletter to subscribers, Gurman outlines how these tariffs, set to take effect by April 9, could impact Apple's pricing strategy and supply chain decisions.Since the iPhone X debuted in 2017 at $999, Apple has kept the starting price of its flagship model steady in the U.S. Storage upgrades have edged costs up slightly, and in 2023, the iPhone 15 Pro Max saw a $100 increase by eliminating its lowest-capacity option. The new tariffs, targeting Apple's main production countries, could push the company to reconsider this approach.The tariffs hit multiple regions where Apple has shifted its manufacturing. India, a growing base for iPhone and AirPods production, faces a 26% levy. Vietnam, producing AirPods, iPads, Apple Watches, and Macs, is looking at a 46% tariff. Malaysia and Thailand, both tied to Mac production, will see 24% and 37% levies, respectively. Ireland, where some iMacs are assembled, gets a 20% tariff, while China's rate climbs to 54% with an additional 34% increase. This wide reach reduces the advantage Apple sought by diversifying from China.Continue ReadingSpotlight Deal:New Apple iPad mini 7 On Sale for $399! [Lowest Price Ever]Share Article:Facebook, Twitter, LinkedIn, Reddit, EmailFollow iClarified:Facebook, Twitter, LinkedIn, Newsletter, App Store, YouTube

Apr 6, 2025 - 17:44

Tariffs Threaten Apple's $999 iPhone Price Point in the U.S. [Gurman]

Apple could finally be forced to make price increases to iPhones in the United States due to recently announced tariffs; however, the company does have multiple ways to cope with changing trade realities, according to a new report from Mark Gurman. In a newsletter to subscribers, Gurman outlines how these tariffs, set to take effect by April 9, could impact Apple's pricing strategy and supply chain decisions.

Since the iPhone X debuted in 2017 at $999, Apple has kept the starting price of its flagship model steady in the U.S. Storage upgrades have edged costs up slightly, and in 2023, the iPhone 15 Pro Max saw a $100 increase by eliminating its lowest-capacity option. The new tariffs, targeting Apple's main production countries, could push the company to reconsider this approach.

The tariffs hit multiple regions where Apple has shifted its manufacturing. India, a growing base for iPhone and AirPods production, faces a 26% levy. Vietnam, producing AirPods, iPads, Apple Watches, and Macs, is looking at a 46% tariff. Malaysia and Thailand, both tied to Mac production, will see 24% and 37% levies, respectively. Ireland, where some iMacs are assembled, gets a 20% tariff, while China's rate climbs to 54% with an additional 34% increase. This wide reach reduces the advantage Apple sought by diversifying from China.

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Spotlight Deal:
New Apple iPad mini 7 On Sale for $399! [Lowest Price Ever]

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