A dramatic surge in iPhone prices may be on the horizon for American consumers, with some models potentially hitting $2,300, as a result of steep new tariffs unveiled by President Trump targeting imports from China and other major trade partners, industry experts caution.
The production cost for the iPhone 16 Pro with 256GB of storage is expected to leap from $550 to $820, TechInsights analyst Wayne Lam revealed to The Wall Street Journal.
That dramatic rise stems from a 54% tariff imposed on Chinese imports — a significant blow to Apple, which relies on China for assembling most of its devices, though components are sourced globally.
While Apple was granted a waiver on China tariffs during Trump’s previous term, no such exceptions have been granted for individual products this time around.
Factoring in manufacturing, quality checks, and other operating expenses, the total cost of producing an iPhone could climb by about 43%, analysts at Rosenblatt Securities told Reuters.
Should Apple choose to shift the added burden to its American buyers, the standard iPhone 16, currently priced at $799, could spike to approximately $1,500.
Meanwhile, the flagship iPhone 16 Pro Max, which boasts a 6.9-inch screen and one-terabyte of storage, may see its price jump from $1,599 to $2,300.
For that amount, a consumer could hang on to their existing device and enjoy a four-night Disney Cruise to the Bahamas — with spare change.
The iPhone 16 does bring new perks to the table, like an improved chip, better battery, enhanced camera, and the addition of Apple Intelligence, but those upgrades might not justify the massive price tag for many shoppers.
The Wall Street Journal also broke down where Apple sources key parts: the rear camera, priced at about $127, is made in Japan. Taiwan supplies the $90 processor. The screen comes from South Korea and costs $38. The memory, one of the few American-made elements, adds just $22 to the bill.
While many customers in the U.S. purchase iPhones through installment plans baked into wireless service contracts, analysts told Reuters that global iPhone sales have been on the decline.
Still, Secretary of Commerce Howard Lutnick floated an alternative solution: shift iPhone production to the U.S.
“The army of millions and millions of human beings screwing in little screws to make iPhones — that kind of thing is going to come to America,” Lutnick said during a Face the Nation appearance.
However, manufacturing iPhones stateside would mean a steep increase in labor costs — from $30 per phone in China to $300 in the U.S., according to Wayne Lam’s comments to the Journal.
And unless Apple also figures out how to locally produce all the individual components, the company would continue to face inflated costs for imported parts.

{Matzav.com}