Did you know iPhone’s Price Tag Could Explode: Trump’s Tariffs Set to Shake Apple’s Profit Strategy

 

A lot of debate has arisen over President Trump’s array of tariffs and how that could impact Apple. Many fear that the obvious result would be the price of devices going up severalfold.

Now, a new report from media giant The Wall Street Journal is sharing the most probable outcome that might arise. They’re also digging down deep to determine how much it really costs the company to produce iPhone 16 Pro and how that could alter, thanks to the tariffs rolled out by Trump.

The latest report crafted the costs encountered by Apple to design the iPhone 16 Pro featuring 256GB of storage. The total involving the battery, Pro Chip, display, storage, rear camera, main enclosure, memory, and other parts gives a grand total of $549 before Trump’s tariffs were shared.

We must add how that does not take into account matters like development and research, marketing, and other costs that aren’t related to hardware for the tech giant. When those do get factored, the WSJ shared how the profit margin for the Cupertino firm is still huge.

Currently, Apple charges $1099 for its 256GB variant of the iPhone 16 Pro. Remember, the parts do come from different places around the globe, but the final assembly arrives in China before they are shipped to America. Trump shared how the 54% tax on all Chinese goods would be implemented soon. So it’s Apple that would be paying that on the total expenses of all the parts, not the retail cost, which is $1099.

The 54% tariffs would mean the iPhone 16 Pro would now cost $847, which is a major hit in the face for the profit margin. This is when you take into consideration various other factors like packaging, shipping, and research.

For now, the iPhone maker isn’t commenting on how it wishes to respond to the tariffs. The company isn’t likely to take the entire 54% tariff, which means consumers will pay a higher price for products in the end.

Some asked if making iPhones in the US would be a viable or better option. As per experts, it’s not clear if anyone can design a competitively priced product in the US. Only assembly labor would cost $30 per device in China, but in the US, it would be nearly $300. So in case you’re in the mood to buy your dream iPhone, do it now because later might not be an option. The same goes for other leading Apple products like AirPods, chargers, power banks, smart watch, and more.