Apple Inc (NASDAQ:AAPL, ETR:APC) stores across the United States have reportedly experienced a surge of "panic buying" as customers rush to purchase iPhones ahead of anticipated price hikes linked to new tariffs imposed by the Trump administration.
These tariffs, which take effect on April 9, include a 54% duty on Chinese imports, significantly impacting iPhones, as most are manufactured in China.
Analysts at Rosenblatt Securities suggest that the most expensive iPhone, the 16 Pro Max, will increase by 43% from US$1,599 to $2,300 if Apple pasts on the full cost of the tariffs to consumers.
Wedbush analysts this week forecast that making iPhones in the US would result in them costing US$3,500.
Apple is using its manufacturing presence in India to help offset the impact of tariffs, as products made in India face a 26% tariff, significantly lower than the 54% tariff applied to those from China. It is increasing shipments of Indian-made iPhones to the US as a temporary solution to offset these costs.
The company plans to manufacture 25 million iPhones in India in 2025, with approximately 10 million units for the local market and the remainder potentially redirected to the US, which is expected to meet about 50% of US iPhone demand.
Tariff fears have seen shares of Apple fall almost 15% in the last five days. The stock bounced back 3.8% to trade hands at $188 on Tuesday morning amid a broader market rally.