Tariffs or Not, I am Nonetheless Glad I Purchased an iPhone 16 Professional Earlier than Summer time

Earlier this month, I panic-bought an iPhone, and I’ve no regrets. I upgraded to a brand new iPhone 16 Professional, someday after President Donald Trump introduced his “Liberation Day” tariffs, however earlier than he added most Apple merchandise to an exemptions checklist. 

My household of three usually offsets the value of a brand new telephone by sticking to a three-year rotation plan — yearly, one in all us will get a brand new telephone. We’re by no means freed from the installment fee plan, but it surely means our invoice by no means goes up an excessive amount of earlier than we repay the final one. My flip wasn’t up till this fall.

I used to be planning to purchase the 16 Professional, hoping I may possibly discover a low cost when the rumored iPhone 17 line got here out. However as a result of I had the 11, I knew the trade-in worth could possibly be fading quick. My telephone wasn’t working correctly, both, so ready till the autumn felt like a big gamble. Add the chance of excessive tariffs and provide chain shortages to that equation, and I made a decision it was price an additional 4 months of paying for a further installment plan in alternate for a working telephone.

The consultants backed me up that that is in all probability how most of us purchase our telephones, utilizing installment plans that scale back the sticker shock of the month-to-month fee — even when tariffs trigger costs to rise.  

“Sure, it may cost 50 bucks extra at some stage, however we unfold that over time,” mentioned Ryan Reith, group vice chairman for IDC’s Worldwide Gadget Tracker suite, which incorporates cellphones, tablets and wearables. 

I am glad I acted once I did. Should you’re contemplating shopping for a brand new iPhone, this is what it is advisable know concerning the present state of tariffs and the way they might affect costs within the coming months.

Are tariffs driving up iPhone costs?

The newest episode of the continuing tariff cleaning soap opera started final week with the US and China agreeing to a 90-day pause on most of their tit-for-tat tariffs. By midweek, Trump was admonishing Apple for shifting manufacturing of US iPhones to India, which at present has its personal non permanent tariff pause in place (aside from baseline tariffs) earlier than it faces a 26% tariff in July. Possibly. 

Though firms rushed to ship merchandise earlier than the tariff deadline, it will not be lengthy earlier than we see extra costs improve on a variety of merchandise — if you could find them in any respect. We’re monitoring real-world impacts of tariffs on standard tech merchandise with our tariff pricing tracker.  

However consultants say value hikes for the iPhone are probably on the way in which, no matter what occurs with tariffs.  

“The iPhone is due for a value improve,” mentioned CNET Managing Editor Patrick Holland, who’s been reviewing telephones for CNET since 2016. “The entry-level iPhone is $829 and has value that a lot for years. The final time it had a value [hike] was in 2020.”

Wherever tariffs find yourself, it’s best to put together now for potential value will increase on electronics and extra. We’ve different choices that can assist you save on the iPhone.

Learn extra: Apple Is Transferring Away From Its Fall-Solely iPhone Launch Schedule, Report Says

How a lot may tariffs increase iPhone costs? We do the maths

We may see anyplace from a 26% hike on Apple merchandise manufactured in India to a 145% improve for these made in China, if the complete value of present tariffs are finally handed on to customers. However at present, items from India and different international locations have a ten% tariff, and iPhones manufactured in China are nonetheless topic to a 30% tariff, which incorporates the ten% baseline plus a 20% “fentanyl tariff” for the nation’s supposed function in permitting fentanyl to enter the US. Here is how that might probably have an effect on the value of the iPhone:

However there’s much more that goes into the value of an iPhone than merely the place it is assembled. Apple sources parts for its merchandise from a protracted checklist of nations, which may face greater tariffs after the pause. And a tariff on items would not essentially imply costs will improve by the identical quantity. If firms need to keep aggressive, they might take up among the prices to maintain their costs decrease. 

“It will not be as excessive as 1-to-1 when it comes to the tariff will increase,” Reith mentioned. “The maths is not as clear-cut as that on the tariffs.”

Apple didn’t reply to a request for remark for an earlier model of this story.

When may we see iPhone costs improve?

It is unclear precisely when costs may go up, but when firms promote out of gadgets produced earlier than the tariffs, they could have to extend costs on merchandise in tariffed shipments. 

Nevertheless, even when Apple cannot keep away from tariffs solely, it has methods to offset the affect via its providers — together with its music, information and knowledge plans — based on provide chain professional Joe Hudicka.

“Apple will probably take up among the tariff prices up entrance to maintain sticker costs secure, then cross the remainder on to customers step by step via service bundles, system longevity and ecosystem upgrades,” he mentioned. “Customers will nonetheless pay, simply not suddenly.”

And no matter how the tariff drama performs out, the Wall Road Journal stories that Apple plans to boost iPhone costs later this yr. So count on costs to go up quickly.

Watch this: Purchase or Wait Information: How Tariffs Will Change Tech Costs and What to Do Subsequent

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What is the newest on tariffs? 

On his Liberation Day, Trump introduced a ten% baseline tariff on all imports plus reciprocal tariffs on imports from greater than 180 international locations. He shortly introduced a 90-day pause on the reciprocal tariffs however left the baseline levies in place.

Trump’s lengthy touted tariffs as a strategy to even the commerce deficit and lift income to offset tax cuts, though many economists say that tariffs may result in greater costs and should find yourself hurting the US economic system. Inventory costs plummeted after Trump’s announcement as markets reacted poorly to the sweeping tariffs.

Trump has taken an particularly laborious stance on China, which was already topic to tariffs that Trump ordered throughout his first time period in workplace. He began in February, imposing 20% tariffs, then introduced a 34% tariff on items from China in April. He added a further 50% tariff earlier than finally touchdown on the 145% tariff towards China. China has responded with its personal tariffs after every of Trump’s bulletins. They agreed to a deal this week to drop their reciprocal tariffs by 115 share factors for 90 days.

The US Customs and Border Safety listed some key client electronics exempted from the reciprocal tariffs, however Trump mentioned these merchandise would nonetheless be topic to a 20% fentanyl tariff. White Home officers mentioned the reprieve from further tariffs was non permanent and that these merchandise would as an alternative be topic to a “semiconductor tariff.”

Even earlier than Trump introduced the tariffs, Apple’s largest suppliers in India had shipped practically $2 billion price of iPhones in March, based on customs data. Reportedly, Apple might supply its iPhones for the US market from India by the tip of 2026 — though maybe not all of them. And Trump lately mentioned he pushed Apple CEO Tim Cook dinner to transfer US iPhone manufacturing from India to the US.

However the price of shifting manufacturing to the US could possibly be prohibitively excessive, at the least for now, as a result of labor prices and logistics.

Tariffs, in principle, are designed to financially affect different international locations as a result of their items are being taxed. Tariffs are paid by the US firm importing the product, and this upcharge is often — however not at all times — handed on to the buyer within the type of greater costs.

Is it higher to purchase tech now or wait? 

Should you already deliberate to purchase a brand new iPhone, gaming console, MacBook or different tech, shopping for it now would possibly prevent cash. However for those who do not want a brand new telephone instantly, Holland recommends ready.

“If iPhone costs rise, know that, like vehicles, the costs for used iPhones will probably rise, too,” he mentioned. “If Apple does increase its costs, you may probably get extra on your previous iPhone if you commerce it in, and that ought to offset any elevated costs.”  

If you do not have the money available and are contemplating utilizing a bank card or purchase now, pay later plan simply to keep away from tariffs, be sure to have the cash to cowl the prices earlier than you begin accruing curiosity. With bank cards’ common rates of interest at present greater than 20%, the value of financing an enormous buy may shortly wipe out any financial savings you’d get by shopping for earlier than costs go up due to tariffs.

“Should you finance this expense on a bank card and may’t pay it off in full in a single to 2 months, you may probably find yourself paying far more than a tariff would value you,” mentioned Alaina Fingal, an accountant, founding father of The Organized Cash and a CNET Cash Professional Assessment Board member. “I’d suggest that you simply pause on any huge purchases till the economic system is extra secure.” 

One strategy to save on Apple merchandise, even when costs go up, is to purchase final yr’s mannequin as an alternative of the most recent launch or a used one. And buying and selling or promoting a used one may also help offset the price much more.

“Apple has leaned into that with its Licensed Refurbished program, very similar to the auto trade’s used automobile mannequin,” Hudicka mentioned. “This program helps prolong the lifespan of gadgets, protecting prospects within the Apple ecosystem longer whereas distributing the price affect over time.”