According to Bank of America analyst Wamsi Mohan’s estimates, Apple may need to raise the price of its iPhone in response to the new tariffs imposed by the U.S. government on imported goods from several countries, including China. If Apple does not adjust the price, earnings per share (EPS) may decrease by US$0.26. If the price increases by 3%, even if the sales volume falls by 5%, EPS may still be reduced by US$0.21. If Apple raises its prices by 9%, it will fully offset the impact of the tariffs and ensure that the company’s bottom line is not hurt.
Wamsi Mohan pointed out in the report that after Trump proposed “reciprocal tariffs,” Apple’s profits will inevitably be hit no matter how Apple responds. The worst scenario is that it will need to raise prices by 9% to absorb the impact of tariffs. The effect may not be limited to the iPhone, but it may also affect other Apple products. The Trump administration’s proposed tariffs cover several electronic components from China, including chips, batteries, and screens, which will inevitably drive up the production costs of Macbooks, iPads, and other devices, which will eventually be reflected in the selling price.
Based on Apple’s annual sales figures of about 50 million iPhones, 15 million iPads, and 10 million Macs sold in the U.S. market, analysts pointed out that if all Apple products are assembled overseas and shipped back to the U.S. for sale, they are subject to a 10% tariff. Apple does not adjust the selling price; the earnings per share (EPS) in 2026 may be reduced by US$0.26. Also, Trump’s plan for reciprocal tariffs on India will likely hamper Apple’s plan to avoid the tariff levies. Although most iPhone models can now be produced in India, the reciprocal tax could exceed the 10% fee imposed on China.
