If you’ve been thinking about upgrading your iPhone, now might be the moment to act. A temporary pause on tariffs affecting smartphones — particularly those imported from China — is set to expire at the end of June. Unless the Biden administration intervenes, the lapse could result in higher prices for iPhones and other electronics starting in July. Apple CEO Tim Cook can’t give you any advice on how tariffs could affect iPhones after June. But expect prices to go up.
Why Are iPhone Prices at Risk?
On a May 1 earnings call, Tim Cook confirmed that iPhones sold in the U.S. are currently being sourced from India, and many Apple products remain exempt from tariffs on Chinese imports. However, he pointed out that certain items—like accessories—aren’t covered by those exemptions. As a result, Apple expects these tariffs to increase its costs by around $900 million for the current quarter ending in June.
What Could This Mean for Shoppers?
While Apple hasn’t officially commented on potential price changes, analysts warn that the return of tariffs could lead to a noticeable uptick in iPhone prices. The impact could range from $50 to $100 per device, depending on the model and how Apple chooses to handle the additional costs. Accessories and other Apple products made in China could also be affected.
“[A price increase would] probably be buried in the promotional deals or the installment plans,” said Ryan Reith, group vice president for IDC’s Worldwide Device Tracker suite, which includes mobile phones, tablets and wearables. “Yes, it might cost 50 bucks more at some stage, but we spread that over time, and it’s a monthly installment plan.”
Retailers might also adjust their pricing strategies ahead of the possible tariff hike. This could mean fewer deals on iPhones in the coming months or higher base prices overall. If you’re in the market for a new phone, especially one of Apple’s more expensive Pro models, it may be worth buying before the end of June to avoid the potential cost increase.
How could tariffs increase iPhone prices?
Image: C/Net
What Should You Do?
If you’re planning to upgrade soon, it’s wise to monitor both Apple’s announcements and broader trade policy news. For now, consider:
- Buying before July to lock in current prices
- Watching for retailer promos in June, especially from carriers or big-box stores
- Checking trade-in values, which might help offset any future price hikes
If you’re already planning to buy a new iPhone, MacBook, gaming console, or other tech, it might be smart to make the purchase now before potential tariff-driven price hikes kick in. But if your current device is still working fine, experts suggest holding off. Even if Apple raises prices, you could get more for your old device when trading it in, which might help offset the increase. Just be cautious about financing big purchases to beat the tariff deadline—credit cards and buy now, pay later plans can carry high interest rates that could wipe out any savings. Instead, consider buying a previous-generation or certified refurbished model, which can offer good value without stretching your budget. Apple’s Certified Refurbished program, for example, works much like the used car market—offering lower prices while keeping customers in the ecosystem longer.
