Apple Raises Prices Of New iPhone 14 Series In Key Global Markets But Fails  To Do The Same In The US / Digital Information World

Apple may need to increase iPhone prices to absorb tariff increase, analysts say

China announced Monday it would impose a 25% tariff on U.S. goods, which is retaliation for President Trump’s plan to increase tariffs on Chinese-imported goods. If smartphones are not on the list of good excluded from these tariffs, the iPhone may see an increase in price according to Wall Street analysts.

‘We estimate Apple would need to take as much as 14% price increase on iPhones to pass on the higher costs as a result of potential expansion of tariffs,’ J.P. Morgan analysts said in a note to investors on Tuesday.

If Apple were to increase prices that would bring the price of an iPhone X to approximately $1,140.

Apple Raises Prices Of New iPhone 14 Series In Key Global Markets But Fails  To Do The Same In The US / Digital Information World

The bank does suggest in lieu of a price increase, Apple may instead absorb the costs of the tariffs. This move, while not affecting the price of its product, would result in a 4% decline in revenue for the iPhone maker according to J.P. Morgan analysts.

Monday’s news of a tariffs increase by China was just half of the day’s bad news for Apple. The Supreme Court ruled Apple customers could sue the company for overcharging for apps in the App Store.

Apple didn’t immediately respond to a request for comment. 

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