If President Trump decides to slap tariffs on the remaining billions of dollars worth of Chinese goods, iPhone prices will need to go higher, according to Wall Street analysts.
Apple would need to raise the price of the iPhone by 14% in order to offset the costs of new tariffs, J.P. Morgan estimates.
Bank of America estimates a 20% price increase to the iPhone if Apple decides to move iPhone manufacturing to the U.S.An Apple iPhone 6 phones are taken out of a shipping box at a Verizon store on September 18, 2014 in Orem, Utah. Apple's new iPhone 6 and iPhone 6 Plus go on sale September 20.
The bank in a note Tuesday broke down the costs of making and selling the iPhone XS with no tariffs, which is about $1,000, versus what it would cost if a 25% tariff hits China-made parts. That would take the iPhone's retail price up to $1,142, the firm calculates. Moving iPhone production exclusively to America is an option for Apple, noted Bank of America Merrill Lynch in on Tuesday. The bank estimates a 20% price increase to the iPhone if 100% of the phone is manufactured in the U.S.
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