iPhone prices 'could surge by £300' amid new Donald Trump tariffs

Investment gurus have sounded the alarm that the price of one of the globe's most sought-after gadgets, the iPhone, could skyrocket following US President Donald Trump's decision to slap new tariffs on imports. They are advising eager consumers to snap up an iPhone sooner rather than later to avoid a potential £300 surge in costs.

Experts warn that due to President Trump's import charges, we could see a staggering 43% increase in iPhone prices in the USA if Apple opts to pass on the heightened material expenses to customers. Although no official word has come from Apple, some market analysts are bracing for a significant uptick in the cost of an iPhone stateside, which could push the price of an iPhone 16 Pro Max to an eye-watering $2,300.

Yet, there's speculation that Apple might cushion the blow in its domestic market by implementing a global pricing strategy, thereby spreading the extra costs across international markets. This could result in more modest price increases worldwide, but it would mean that consumers everywhere would feel the pinch.

Prem Raja, the chief of the trading floor at Currencies 4 You, commented: "President Trump's recent tariffs on Chinese imports could significantly impact iPhone pricing globally. Analysts suggest U.S. prices might surge by up to 43% if Apple passes on the costs, potentially raising the iPhone 16 Pro Max price to approximately $2,300.

"To mitigate such steep increases in its home market, Apple might adopt a global pricing strategy, distributing the additional costs across various regions. This approach could lead to moderate price hikes in the UK and other countries, helping to maintain competitive pricing in the U.S.

"Anticipation of these increases may prompt consumers to expedite their purchases, aiming to secure current prices before adjustments occur. However, significant price hikes could dampen demand over time, challenging Apple's market position. The company's response will likely involve a delicate balance between sustaining market share and managing profit margins amid these tariff-induced challenges."

Harry Mills, director at Oku Markets, warned: "The price of iPhones could rise by as much as 40% thanks to new U.S. import tariffs hitting key components such as the device's processor from Taiwan, its memory and rear camera from Japan, its display from South Korea, and the battery and enclosure from China. Apple makes a healthy margin on iPhones, but with costs increasing by more than 50%, consumers can surely expect a feedthrough straight to prices, with the top-spec iPhone 16 Pro Max possibly reaching $1400-1500.

"UK consumers likely won't benefit from any weakness in the US dollar, as the tech giant uses the same unit price of £999 or $999 for the iPhone 16 Pro and £1,199 or $1,199 for the iPhone 16 Pro Max. Consumers eyeing an upgrade might do well to act sooner and avoid a gamble on a £300 price hike."

Greg Zakowicz, a senior e-commerce expert at Omnisend, warned: "Considering there was a row of Silicon Valley tycoons standing behind Trump at his inauguration, cosying up to him, these sweeping tariffs are bound to hit them all where it hurts - their profit margins. Apple is no exception to this. While their products are proudly stamped with 'designed in California', it is quickly followed by 'made in China'.

"The tech giant has been moving towards making its own hardware, such as the chips, but the phones are still assembled in China and will be affected by these tariffs. Apple's iPhone is their most successful product and there's a chance fans in countries beyond the US could be made to share the burden of increased prices. In such uncertainty, anyone considering buying an iPhone may want to get their skates on before Apple execs begin to look more closely at pricing."

Gabriel McKeown, head of macroeconomics at Sad Rabbit, pointed out: "While the US braces for jaw-dropping price increases, Apple may soften the blow in the UK by spreading costs globally. However, in an inflation-weary UK where household budgets are already stretched thin, a modest 10% rise could push an entry-level iPhone to nearly £900, driving consumers to their financial breaking point."

Tony Redondo, the founder of Cosmos Currency Exchange, warned: "Trump's tariffs could double the cost of iPhones in the US if Apple passes on the full whack of the 54% China tariff. That's a $799 iPhone 16 rocketing up to $1,598 or a $1,599 Pro Max hitting $3,200. In the UK, Apple might dodge a direct hit as tariffs don't apply to imports here but don't expect prices to stay put given input cost rises.

"Apple could spread the pain globally, nudging UK prices up by, say, 20% (think £799 to £959) to offset US losses without tanking demand. People might rush to buy now, especially in the US, to beat the hike. But Apple's cagey; they might eat some costs or snag exemptions. Either way, wallets will wince."

Meanwhile, Scott Gallacher, director at Rowley Turton, commented: "It'd be commercial suicide for Apple to hike UK prices to offset US tariffs. British consumers are safe - just like we pay £100 for Levi's while Americans pay $100, Apple will protect its global pricing to stay competitive. If anything, expect a few US shoppers eyeing up the UK for a cheeky tariff-free iPhone run."