Apple May Raise iPhone Prices in the U.S. as New Tariffs Loom

For years, Apple has managed to keep the starting price of its flagship iPhone steady at $999 in the U.S., despite inflation, rising production costs, and shifting global supply chains. But that consistency could soon be tested.

According to a new report from Bloomberg’s Mark Gurman, newly announced tariffs set to take effect by April 9 could force Apple to finally adjust its pricing strategy—especially for the iPhone.

Tariffs Target Apple's Global Supply Chain

The new tariffs hit hard across many of the countries where Apple has been building out its manufacturing footprint. With China facing a combined 54% tariff, and other major production hubs like Vietnam, India, Malaysia, and Ireland also seeing steep levies, Apple’s once-flexible global supply chain just got a lot more complicated.

• India, where iPhones and AirPods are now made, faces a 26% tariff

• Vietnam, which produces AirPods, iPads, and Macs, is hit with a 46% tariff

• Malaysia and Thailand, involved in Mac assembly, face 24% and 37% respectively

• Ireland, home to some iMac production, sees a 20% tariff

• And China, Apple’s largest production hub, jumps to a 54% rate with the new increase

This broad coverage essentially undercuts Apple’s efforts to move production away from China over the past few years in response to earlier trade tensions.

Apple’s Strategy: Delay, Absorb, or Adjust

Despite the pressure, Apple isn’t expected to raise prices immediately. The company has reportedly been stockpiling iPhone inventory in the U.S., giving it a buffer while it considers its options. That may help Apple maintain current pricing until the iPhone 17 launches in September.

Other strategies Apple could employ include:

• Negotiating lower component prices with suppliers

• Absorbing some of the costs, which would hit margins (Apple’s hardware margin sits around 45%)

• Seeking tariff exemptions, a tactic Apple used successfully in the past

• Exploring new regions for production, though a large-scale shift to U.S. manufacturing still seems unlikely

Why the $999 Price Point Matters

That $999 price tag has been more than just a number—it’s been a psychological ceiling for many buyers. While Apple has nudged costs higher through storage tiers or by eliminating lower-capacity options (as with the iPhone 15 Pro Max), the base price has remained consistent.

With many customers opting for installment plans or trade-in programs, list prices often don’t reflect what buyers actually pay month to month. Still, any increase in base pricing could spark resistance, especially during a year when competition in the smartphone market is intensifying.

Looking Ahead

Apple has weathered trade policy storms before. During the Trump administration, CEO Tim Cook managed to secure exemptions that spared the iPhone from earlier tariff threats. But with the scope of these new tariffs covering nearly all of Apple’s current manufacturing countries, the challenge is much bigger this time.

Price changes, if they come, will likely show up with the fall product cycle. In the meantime, Apple is watching the situation closely—and quietly planning its next move.