President Donald Trump’s newly announced 54% tariff on Chinese imports sent shock waves through the tech industry, with Apple potentially facing billions in additional costs. This raises an urgent question for consumers: Should you rush to buy that new iPhone or MacBook before prices skyrocket?
You might want to accelerate the timing of that upgrade you had in the back of your mind. But those who aren’t desperate to upgrade might benefit from playing the waiting game. See the ins and outs below.
Should you upgrade Apple gear now to beat rising prices?
Apple shares plunged more than 9% on Thursday — the stock’s worst showing since 2020, during the COVID-19 pandemic — as investors grappled with the implications of the Trump administration’s steep tariffs on China and other countries’ goods. Apple now faces a difficult choice: Absorb the costs or pass them on to consumers through price increases, which could be quite high.
Potential price hikes on Apple products, according to Rosenblatt Securities:
• iPhone: +43%
• Apple Watch: +43%
• iPad: +42%
• Airpods: +39%
• Mac: +39%
How much could prices increase?
If Apple passes the full impact of tariffs to consumers, the price increases could be substantial — up to 43%. That’s according to analyses from Wedbush Securities, among others:
- The standard iPhone 16, currently priced at $799, could jump to approximately $1,142.
- The high-end iPhone 16 Pro Max with 1TB storage might rise from $1,599 to nearly $2,300.
- And the budget-friendly iPhone 16e, introduced at $599 in February, could see its price climb to $856.
Should you buy now?
Your $1,599 MacBook Pro is now going to cost $1,918.
But don't worry, when Apple listens to Trump and moves production to the U.S. it will cost $2,500. https://t.co/4cOR3iTmJ9
— Oliver Alexander (@OAlexanderDK) April 3, 2025
Several factors outlined below should influence your decision about whether to purchase Apple products before potential price increases take effect.
Timing considerations
Apple typically releases new iPhone models in September, and analysts suggest the company might hold off on significant price increases until then.
“We expect Apple to hold off on any major increases on phones until this fall when its iPhone 17 is set to launch, as it is typically how it handles planned price hikes,” Angelo Zino, equity analyst at CFRA Research, told USA Today.
This means consumers might have a window of opportunity to purchase current models at existing prices before any substantial increases occur.
Value assessment
Consider how long you plan to keep your device. If you’re due for an upgrade and plan to use your new device for several years, buying now could represent significant savings, especially for higher-end models where price increases would be most dramatic.
Current device status
If your current Apple device is functioning well, it might be wise to wait. Apple Intelligence, the company’s suite of AI features, “failed to enthuse buyers,” according to Reuters. Expert reviews suggest these features “do not provide enough of a compelling reason to justify upgrading to newer models.”
Will tariffs actually lead to price increases?
Despite the alarming projections, several factors below could mitigate or prevent dramatic price hikes.
Limited consumer tolerance
Analysts question whether Apple can pass all costs to consumers.
“Apple would have a ‘tough time’ shifting more than 5% to 10% of the cost to consumers,” Zino told USA Today.
With inflation already squeezing household budgets, consumers could resist significant price increases, forcing Apple to absorb more of the tariff impact.
Potential exemptions
During Trump’s first term, Apple secured exemptions from certain tariffs. While no exemptions have been announced yet, negotiations could occur.
“If anyone can get an exemption, it would be Apple, and it could be a way for Trump to calm markets if the situation gets out of hand,” Zino wrote in a research note. “Still, investors shouldn’t hold out hope of an exemption as Trump 2.0 feels much different than Trump 1.0.”
Manufacturing shifts
Apple has been gradually diversifying its manufacturing beyond China, with some production moving to Vietnam and India. However, these countries also face new tariffs (46% and 26% respectively), and shifting production takes time.
“It would take three years and $30 billion to move 10% of Apple’s supply chain from Asia to the U.S.,” Wedbush Securities’ Daniel Ives estimated.
The bottom line
If you’ve been considering an Apple purchase, the threat of significant price increases might justify accelerating your timeline. And that’s particularly the case for higher-end products where the absolute dollar increase would be greatest.
However, the full impact of tariffs remains uncertain, with potential exemptions, gradual implementation or Apple’s absorption of costs potentially limiting consumer price increases.
The most prudent approach is to evaluate your actual need against your budget constraints. If your current device meets your needs and isn’t showing signs of failure, waiting to see how Apple and the market respond to these tariffs could be the wiser course of action.
As Barton Crockett from Rosenblatt Securities observed, “It’s hard for us to imagine Trump blowing up an American icon … but this looks pretty tough.”
David Snow, an expert on Apple hardware and software, writes on a variety of technological and cultural topics for Cult of Mac. They include Apple news, technology buying guides, and features about computer setups and Apple TV shows and movies.
With 30 years of experience covering technology and other subjects, he has written and edited for numerous print and online publications, including CMP Media, TechTV.com, CNET, Wired News, Red Herring magazine, Law.com, The National Law Journal and Law Technology News magazine. Among other roles, he served as executive editor of the Law.com network of websites and editorial director, technology, for ALM Media.
Snow graduated with a B.A. from Syracuse University with majors in magazine journalism and psychology. While there, he worked as a reporter for The Daily Orange newspaper and associate editor of Equal Time magazine.
Founder of the blog At the Waterline, he can be reached on X (formerly Twitter) via @atthewaterline and on Mastodon via @dsnow.
