According to Bank of America’s forecasts, Apple will have to significantly raise prices for iPhones and other products or fully compensate for future duties proposed by Donald Trump.
Currently, Wall Street and Main Street are trying to predict the consequences of Trump’s ambitious plans for business after he signed a memorandum last week to introduce «reciprocal duties» for foreign countries. Recently about a 10% increase in prices for laptops Acer announced, and now experts predict the same decision from Apple.
Bank of America analyst Vamsi Mohan (via BGR) warns that «the company’s profits will suffer regardless of its reaction to» and considers scenarios where Apple either keeps prices at the same level in the US or raises them.
«We estimate that Apple sells 50 million iPhones, 15 million iPads, and 10 million Macs a year in the U.S.,» Mohan says. «We assume that 100% of devices sold in the US will be subject to a 10% tariff. In a scenario where Apple does not raise prices in the US, we see a negative impact on EPS of $0.26 in calendar year 2026».
If Apple raises prices by 3% in the US, the impact on profits will be $0.21 in 2026 after a 5% drop in sales.
«If demand turns out to be inelastic, the impact on Apple will be even smaller», Mohan said. «Apple will have to raise prices by about 9% to offset the impact of 10% tariffs (with 5% fewer units sold)».
Similarly, according to the analyst, Trump’s plan for reciprocal tariffs canceled a potential workaround for Apple in India, which could have avoided some of the fees imposed on China (currently, about 15% of iPhones are already produced in India).
If Apple passes on Trump’s tariffs to customers, the basic iPhone 17 could cost $870 instead of $799, while the price of the iPhone 17 Pro will start at $1089 (almost $100 more expensive than its predecessor). It can also be assumed that Apple could have already taken tariffs into account in the price iPhone 16e, which currently costs $599 (without the 9% increase, its price would have remained at $549).
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