New tariffs imposed by the U.S. on Chinese goods, including smartphones, continue to cast a shadow over Apple's iPhone prices and availability in 2025. While some electronics have been temporarily exempted from the most severe tariffs, a 20% duty on Chinese imports remains, and further changes are possible.
Apple is actively diversifying its manufacturing base to mitigate these risks. The company is increasing iPhone production in India and Vietnam, aiming to reduce reliance on China. By the end of 2026, Apple may source iPhones for the U.S. market from India, though not all production will shift. India's share of global iPhone production could reach 25% in 2025, potentially expanding to 45-50% by 2027.
Despite these efforts, shifting a substantial portion of production to the United States could significantly increase costs, potentially raising the price of an iPhone. Analysts estimate that tariffs could increase iPhone prices, with some projections suggesting a potential rise of 30-43% depending on whether Apple absorbs the costs or passes them on to consumers. Some analysts warn that if iPhones were manufactured in the U.S., the price could soar to approximately $3,500.