Analysts say US tariffs could increase iPhone prices by up to 43%

US tariffs on countries worldwide could lead to a massive price increase for Apple's iPhones.

Research firm Rosenblatt Securities analysts estimate that iPhone prices could spike by 43% if Apple decides to pass on costs to consumers. Counterpoint Research expects Apple to raise the prices by at least 30%. Translating these projections into actual numbers, we are potentially looking at these retail prices: 

The impact of the tariffs is significant for Apple as it manufactures most of its products overseas. Specifically, China is slapped with a whopping 54% tariff, followed by Vietnam at 46%, and India at 27%. 

Since it costs more to import these devices, Apple is, realistically speaking, faced with these three options.

• Absorb the costs
• Pass them on to consumers
• Request a tariff exemption (which US President Trump granted during his first term in office)

Given the company's reputation for fiercely protecting its profit margins, it looks like the second option is most plausible. The third option will obviously be the most palatable, but negotiations will take time and Trump has reportedly said he will not give exemptions this time.

At this point, because of the complicated global supply chain that Apple has in place, it's hard to say how prices in Singapore will be affected. However, experts suggest that consumers in Singapore should brace themselves for price hikes.

Source: Reuters via 9to5Mac, MacRumors

Read next: How will US tariffs affect the price of iPhones in Singapore?

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