Employees at Apple Stores across the country reported throngs of iPhone buyers over the weekend, according to a new report. Larger-than-average crowds look like a response to President Donald Trump’s tariffs on goods imported from China and other countries — and the specter of rising iPhone prices. In a happy surprise, the tariffs might actually drive iPhone sales before they potentially jack up prices.
Most iPhones come from China, which is up against a 54% tariff on exports to the United States. Most experts agree that rising costs will be passed on to consumers.
Tariffs drive iPhone sales as customers worry about price increases
Even as new tariffs roiled the stock market, dropping Apple’s share price precipitously, they also caused a sales boost for the iPhone giant, Bloomberg reported. That’s good, because Apple’s value dropped by half a trillion dollars late last week.
Apple employees said customers voiced concerns over tariff-induced price rises. iPhones are Cupertino’s most popular product. People want to upgrade before prices skyrocket. Some estimates say top iPhones, priced at $999 since 2017, could top $2,000 apiece after tariffs take effect.
“Almost every customer asked me if prices were going to go up soon,” said one worker, who described panic-buying among customers.
How big were the crowds?
The crowds fell short of iPhone launch-sized rushes, the report noted, but resembled holiday shopping.
“People are just rushing in worried and asking questions,” another worker said.
Though Apple declined to comment on the situation, sources indicated Apple’s domestic retail stores over the weekend topped prior years in some big markets.
Apple stocks up on inventory
In preparation for price volatility because of tariffs, Apple has taken action, like stocking up on inventory. It just brought in more products from India, for example. India faces lower tariffs than China.
And Apple’s move to make more products in Vietnam, including Macs, iPads, AirPods and Apple Watches, started a few years ago. The iPhone giant also makes Macs in Ireland, Malaysia and Thailand.
Apple may try to avoid raising prices much through other measures, like temporarily putting up with lower margins and passing costs to suppliers.
Tariffs drive iPhone sales now, tariff pain comes later
This sales surge is built on inventory Apple already had in place. Sales will count for Apple’s third fiscal quarter of 2025, ending in June. So tariff pain is likely mostly deferred to the following quarter, Bloomberg said.
On May 1, Apple reports its fiscal second-quarter earnings numbers. Investors and market analysts will hear then about how Apple may react to the tariff situation from CEO Tim Cook and CFO Kevan Parekh.
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.
