Apple CEO sends blunt message on tariffs impact

For anyone wondering whether buying a new iPhone is about to become more expensive, the answer has finally been revealed.

Over the past few months, many experts have speculated that President Donald Trump’s tariffs, primarily those levied against China, will have significant consequences for the U.S. economy. Meanwhile, consumers have anxiously waited to learn just how much the prices of goods will increase.

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Through it all, one company that has been in full focus is Apple  (AAPL) , as people wonder if the prices of iPhones and MacBooks will rise. While there’s been little doubt that the cost of Apple’s products will increase, the amount has remained a mystery.

Recently, Apple CEO Tim Cook provided some context on what the tariffs will mean for his company. However, he did not answer the question that’s likely been on many people’s minds for months.

Apple braces for impact as tariff-imposed costs loom

Last week, Apple reported earnings for Q2 2025, coming in above estimates on multiple metrics. With both revenue and earnings-per-share slightly higher than the analysts had predicted, the company continued its four-quarter streak of beating Wall Street forecasts.

Related: Apple sees sharp narrative shift as tariffs dominate tech giant’s outlook

On top of that, Apple saw 2% year-on-year growth from its iPhone revenue, indicating that demand for its flagship product isn’t slowing down. But with the tariffs looming, questions abound as to whether price hikes are coming and if they are, how high they will be.

During the earnings call, Cook didn’t specify how much iPhone prices are likely to rise in the coming year. However, he revealed that he believes Trump’s tariffs will increase Apple’s costs by roughly $900 million for the current quarter, ending in June. He also noted that this number is contingent on tariff rates remaining unchanged.

In addition, Cook highlighted one of Apple’s businesses that has been severely affected by the tariffs so far. “For China, there was an additional 125% tariff for imports of certain categories of products announced in April. And for us, that’s some of our U.S. AppleCare and Accessories businesses, and brings the total rate in China for these products to at least 145%,” he stated.

Cook acknowledged that many Apple products aren’t currently subject to the reciprocal tariffs announced last month, as the Department of Commerce is currently investigating semiconductor imports and the equipment needed to build them.

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However, while the investigation drags on, the possibility remains that iPhone prices will rise, as will those of other popular Apple products, regardless of Trump’s future tariff decisions.

Will your next iPhone be more expensive than expected?

Trump has indeed exempted smartphones from his reciprocal tariffs, along with some other popular consumer electronics. At first glance, that might make it seem like Apple’s products won’t be severely impacted.

Related: No, Apple iPhones won’t be made in America anytime soon

But that doesn’t mean iPhone price increases aren’t coming. A recent analysis from CNet estimates that “If the full cost of current tariffs were passed on to shoppers, we could see anywhere from a 26% hike on Apple products manufactured in India to a 145% increase for those made in China.”

The outlet also notes that regardless of where iPhones are made, Apple still sources its iPhone components from many different countries, including Japan and Taiwan. If these nations are subject to further tariffs, it could end up imposing even higher costs for Apple.

“It’s unclear exactly when prices could go up, but if companies sell out of devices produced before the tariffs, they may have to increase prices on products in tariffed shipments,” the report adds.

The fact that Cook hasn’t provided an update on iPhone price increase yet suggests that the company is still considering the factors and assessing its options. But with the company facing high costs from the tariffs, it seems likely that higher prices are coming. 

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