Analysts indicate that Apple is likely to implement a 9% price increase on its iPhones to counter rising production costs due to mounting Trump tariffs. The prediction comes amid growing concerns over earnings impacts, although no official decision has been announced by the Cupertino-based technology giant in a recent analysis.
Acer was the first company to proclaim a 10% price increase that consumers will be required to pay under the Trump Tariff saga. However, the Taiwanese company’s market capitalization is insignificant in comparison to Apple’s, which is why it was compelled to make this decision.
Analysts predict that Apple will have to increase the pricing of its products, especially iPhones, to mitigate the impact of these taxes, proving that not even the trillion-dollar behemoth is safe from these consequences. The one catch is that no matter what happens, Apple will not be happy.
Regardless of the circumstances that may befall Apple, the tariffs imposed by the Trump administration will guarantee that the Cupertino company will be forced to endure losses in some form or another.
Wamsi Mohan, an analyst at Bank of America, has reportedly told CNBC that the company’s profits could be affected regardless of what happens. Several options have been considered by Mohan for how Apple might deal with these tariffs, including passing the cost on to consumers or absorbing them. Both fronts will be particularly hard on Apple’s iPhone maker.
An example of this would be a loss of 26 cents in earnings per share, which is equivalent to 3.1 percent, for the calendar year 2026 if the technology powerhouse continues to maintain its current position and does not raise the pricing.
Instead, a 2.4 percent decline in earnings per share would occur within the same time period if Apple implemented a 3% price increase. Mohan predicted that Apple would ship 5% fewer smartphones due to the price increases.
If, on the other hand, the increase in costs did not have an impact on sales—which would be a miracle—then the impact of the tax on Apple would be much less significant.
In order to counteract the negative impact of the Trump tariffs and account for the possibility of a dip in sales volume for the year, Mohan concludes that the firm would have to implement a 9% price increase across the board. Even though Mohan thinks the tariffs will be “manageable,” it is still unknown what Apple’s final decision will be.
Luis Gochoco is a seasoned managing editor and writer with over a decade of experience covering politics, technology, gaming, and entertainment news. With a keen eye for breaking stories and in-depth analysis, he has established himself as a trusted voice in digital journalism. Luis is one of the key forces behind the success of GameNGuide, contributing to 12 million views through engaging and high-traffic content. He also played a pivotal role in generating 8 million views on International Business Times, shaping the platform’s technology and gaming coverage.
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