Trump’s tariffs put the iPhone in a tough spot

The US smartphone market is weird. Most of us buy our phones through some combination of installment plans, trade-in offers, and carrier deals, so answering the question “How much does this phone cost?” can sometimes require a little galaxy-brain math. President Trump’s 34 percent tariff increase on Chinese goods is set to take effect on April 9th, making things even more complicated. Will Apple, for instance, pass the extra cost of an iPhone right along to buyers? The market seems to think so. It’s likely why Apple’s shares are down almost 10 percent, the worst drop in about five years.

But Gerrit Schneemann, a senior analyst at Counterpoint Research, doesn’t necessarily believe we’ll see an immediate price increase.

“I don’t foresee them… on a short-term basis just raising prices unnecessarily,” Schneemann told The Verge.

He points out that Apple’s margins (historically about 38 percent) give it more wiggle room to absorb the costs of the tariffs, at least in the short term. “But I think if this sticks, then probably with the 17 we could see a price hike,” he said, referring to the iPhone 17 expected in the fall.

If the goal with these tariffs is …

Read the full story at The Verge.