As new U.S. tariffs loom, Apple has begun stockpiling iPhones and other hardware to delay raising prices for consumers. The tech giant is working behind the scenes to manage the impact of international trade barriers.
The company hopes to avoid passing costs to customers until its next product cycle. However, experts warn that a price increase is nearly certain by late 2025. Devices like the iPhone 17 Pro could surpass $2,000 due to the economic strain caused by tariffs.
Production Challenges Remain
While Apple has tried to shift manufacturing away from China, its alternative locations like India and Vietnam also face high import duties. Although U.S.-based chip production is expanding through partnerships like TSMC and Intel, the output is still too small to meet Apple’s demand.
Building new U.S. factories would take years and won’t solve Apple’s immediate issues. Even if production moved stateside, raw materials would still need to be imported—subjecting them to additional costs.
Short-Term Strategies in Motion
To soften the blow, Apple is exploring several short-term strategies. These include stockpiling devices, cutting profit margins, and negotiating better deals with suppliers. The average markup on Apple products is around 45%, offering some temporary buffer.
The company may also redirect shipments from overseas factories directly to non-U.S. markets to sidestep tariffs on American imports and exports. However, analysts believe these solutions can only delay—not prevent—price increases.
Impact Beyond Apple
Apple isn’t the only brand affected. The U.S. tariffs are expected to cause price hikes across many sectors, including tech and consumer goods. Retailers and consumers alike are bracing for higher costs in the months ahead.
Apple’s stock has already felt the effects of the economic tension, and with recession concerns growing, experts worry that consumers may delay major purchases—further complicating Apple’s outlook.
Although Apple’s stockpiling efforts may buy time, long-term tariff impacts appear unavoidable. Customers should expect higher prices unless significant trade policy changes occur soon
