Apple's upcoming price hikes may be unavoidable due to President Trump's proposed 54% "reciprocal tariffs" on Chinese imports, which could cause a major spike in iPhone prices. Analysts at Rosenblatt Securities predict the cost of the iPhone 16 could jump from $799 to $1142, with the iPhone 16 Pro Max reaching a staggering $2300. Even lower-priced models, such as the iPhone 16e, could rise from $599 to $856.

However, not everyone agrees. Angelo Zino of CFRA Research suggests Apple might avoid major price hikes, likely limiting increases to 5-10% due to weak sales and anticipation for the iPhone 17 launch in the fall. In light of these challenges, Apple may have to choose between absorbing the additional costs, reducing profit margins, or passing the tariffs onto consumers.

The company is also grappling with a drop in stock value, with shares hitting their lowest point since March 2020, adding more pressure to their pricing strategy. Furthermore, Apple’s semiconductor partner, TSMC, faces delays in its U.S. chip production, potentially complicating Apple's manufacturing plans.

As tariffs loom, Apple may push its partners, like TSMC, to accelerate U.S. production, to mitigate the impact of tariffs on its global supply chain, which heavily relies on China. With over 220 million iPhones sold annually, most of which are purchased in the U.S., Apple’s strategy in navigating these turbulent times is crucial to its success.

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