Donald Trump sets the iPhone 17 price at $2,300. Apple and Samsung phone prices are set to rise after tariffs increase
The current technological landscape is volatile. Quite frankly, the new tariffs imposed by Donald Trump have turned the market upside down, with Asian-made electronics, such as iPhones and Galaxy phones, being the hardest hit.
With tariffs reaching 54% on imports from China, 46% on imports from Vietnam, and 26% on imports from India, supply chains for major tech companies are in shambles.
Apple, which produces most of its devices in these three countries, is currently facing a serious problem, despite the good relationship between Tim Cook and Trump. It has two options: bear the additional cost or pass it directly on to consumers.
According to a report from Rosenblatt Securities, if the company chooses the latter option, the price of the iPhone could increase by as much as 43%. This means that the most expensive model, the iPhone 16 Pro Max with 1TB storage, would rise from $1,599 to $2,300. Even the base model could exceed $1,100, an unprecedented figure in Apple's history.
India has gained prominence as an alternative for diversifying the production of all this technology. Currently, one in seven iPhones is manufactured there, and Foxconn—Apple's main business partner—is expanding its operations in the Asian country.
The Indian strategy seemed like the ideal solution to somewhat circumvent the problems caused by the US-China trade war. However, with 26% tariffs imposed on products from India, this option no longer seems as promising as it once did.
Despite all this, Apple continues to focus heavily on India as a major center for its future production. Foxconn has invested millions of dollars in new facilities to assemble devices like the iPhone and iPad there. But even this diversification may not be enough if trade problems continue to escalate.
In light of all this, who will pay the real consequences? Analysts like Neil Shah suggest that Apple may have to raise its prices globally to recoup its losses. This could mean that consumers will see increases in the final cost of their iPhone or Galaxy.
Premium smartphones like the iPhone 17 or Galaxy S26 could see significant price increases, which would also reduce demand if their prices rise significantly. This would open the door for lower-cost manufacturers like Xiaomi or Oppo, which could gain market share with more affordable alternatives.