What would be the new price of the iPhone due to the impact of tariffs and the trade war?

Amid a tariff frenzy that drove many consumers to buy an iPhone for fear of a massive price increase, US President Donald Trump announced a limited-time tax exemption for some iPhones with screens. Given this situation, how much could the price of the phone and other popular devices increase?

The iPhone isn't just a luxurious object. It's a status symbol and a key part of the Apple ecosystem. It represents innovation, style, and a deep connection to the technology that defines modern American life.

The company sells more than 220 million iPhones a year and is one of the largest distributors. And although its label says " designed in California ," nine out of ten are processed in China, at Foxconn in Zhengzhou. Meanwhile, its advanced System-on-Chip (SoC), which performs millions of calculations, is manufactured in Taiwan, at TSMC.

Furthermore, seven of the ten best-selling devices worldwide are iPhones, highlighting their strong global reputation. In the United States, its iOS operating system dominates the market with a 57.36% share, according to StatCounter Global Stats.

The cost of producing the 256GB iPhone 16 Pro is around $550 , according to a WSJ breakdown. However, with the implementation of the new tariffs, the price could rise to $847 , representing a 54% increase.

Furthermore, this tariff policy could inflame prices for products like the MacBook, iPad, and AirPods, according to analysts. In turn, this price increase could curb demand and further crush Apple's stock, which has fallen 22% so far this year.

Anticipating the imminent trade war, the company made arrangements to diversify its logistics system. It currently assembles certain iPhone, Mac, and iPad models in India, Ireland, Thailand, and Malaysia.

The iPhone's internal components, especially those manufactured in China such as the battery, camera modules, and chip assembly, would be the most affected. Furthermore, production would be significantly affected by tariffs imposed on Vietnam, South Korea, and Taiwan.

Experts suspect Apple is considering three alternatives: devising a plan to avoid the price increase, applying the increase to offset the new tariffs, and, the least likely option, reducing its profit margin and delaying the update of its equipment.

The underlying argument that most concerns the company is that the White House still insists on moving iPhone factories to US soil. They argue that they have the appropriate personnel and the necessary robotic assistance.

The problem, according to Apple CEO Tim Cook and his predecessor, the late Steve Jobs, is that their country lacks the skilled workforce and specialized engineering skills these industries demand.

To calm the situation, Apple pledged to invest $500 billion in the US for a new manufacturing facility in Houston to produce servers that support Apple's AI. The commitment did not include assembly of consumer hardware in the United States.

"In China, there's an entire ecosystem to support assembly, from the company that processes screws to the one that solders the circuits on a board to the one that shapes the cases. It would take years to replicate this anywhere else in the world," says Jason Miller, a professor of supply chain management at the University of Michigan.

China supplies the United States with the vast majority of its electronics. Cell phones and laptops alone account for more than 16% of all imports. This is part of the reason the Trump administration made some concessions.

However, this week, the government announced that many devices, especially those containing semiconductors, could face new tariffs. These tariffs, motivated by national security concerns, seek to protect the country's technological infrastructure and reduce dependence on foreign products.

It's no coincidence that the US mobile market grew more than 5% in the first quarter of 2025, according to IDC. This increase is due in part to the "urgency to buy ahead of potential price increases," explained Anthony Scarsella, research director at IDC.

This makes it difficult for buyers to know what to expect and also forces tech companies to adjust their supply chains to potential fluctuations in demand. All this while trying to maintain reasonable prices , which adds an extra layer of complexity.

"Assuming everything goes in the direction this is pointing, it could cause shortages and likely price increases for most devices. But all of that is very difficult to predict," said Ben Bajarin, CEO and principal analyst at Creative Strategies.

Another additional problem is that US tariffs could also trigger a spike in the prices of the country's gaming supplies, affecting both consoles and video games .

In the event of a potential run, Logitech raised its prices by 25% on a wide range of products. Unlike other manufacturers, such as HYTE, which attributed this to tariffs, the gadget company offered no explanation.

Another company that will adjust its prices is Sony, which will raise prices by 25% for the PlayStation 5 in Australia, Europe, and New Zealand. This is because the tariffs directly impact production lines.

Although a significant group of companies such as Xbox, HP, AMD, and Intel are watching closely for any signs, we'll have to wait to see what their plans will be for responding to the tariffs imposed by Donald Trump.

And while many products benefited from the exemptions, others, such as USB charging cables, portable batteries, headphones, and video game consoles, fell through the net.

Following this same reasoning, some accessories, such as phone chargers, power banks, and headphones, have already increased their value on Amazon.

The big exception is the Switch 2, which, after a brief hiatus, resumed pre-orders for the console, respecting the previously announced $450 price tag. However, accessories will see a significant increase in price.

"We apologize for the delay in orders and hope this reduces uncertainty for our customers," the official statement said.