Tariffs or Not, I’m Still Glad I Bought an iPhone 16 Pro Before Summer

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 record. 

My household of three sometimes offsets the worth of a brand new cellphone by sticking to a three-year rotation plan — yearly, one in all us will get a brand new cellphone. We’re by no means freed from the installment cost plan, however it 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 might 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 may very well be fading quick. My cellphone wasn’t working correctly, both, so ready till the autumn felt like a bet. 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 an extra installment plan in trade for a working cellphone.

The specialists backed me up that that is in all probability how most of us purchase our telephones, utilizing installment plans that cut back the sticker shock of the month-to-month cost — 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 after I did. Should you’re contemplating shopping for a brand new iPhone, here is what that you must know in regards to the present state of tariffs and the way they might impression costs within the coming months.

Are tariffs driving up iPhone costs?

The most recent 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 the moment has its personal momentary tariff pause in place (apart from baseline tariffs) earlier than it faces a 26% tariff in July. Perhaps. 

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

However specialists say worth hikes for the iPhone are seemingly on the best way, no matter what occurs with tariffs.  

“The iPhone is due for a worth enhance,” 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 worth [hike] was in 2020.”

Wherever tariffs find yourself, you need to put together now for potential worth will increase on electronics and extra. We have now various choices that can assist you save on the iPhone.

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

How a lot might tariffs elevate iPhone costs? We do the maths

We might see anyplace from a 26% hike on Apple merchandise manufactured in India to a 145% enhance for these made in China, if the complete value of present tariffs are ultimately handed on to consumers. However at the moment, 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 position in permitting fentanyl to enter the US. This is how that would doubtlessly have an effect on the worth of the iPhone:

However there’s much more that goes into the worth of an iPhone than merely the place it is assembled. Apple sources elements for its merchandise from a protracted record of nations, which might face larger tariffs after the pause. And a tariff on items would not essentially imply costs will enhance by the identical quantity. If firms need to keep aggressive, they might take up a few of 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 might we see iPhone costs enhance?

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

Nevertheless, even when Apple cannot keep away from tariffs completely, it has methods to offset the impression via its companies — together with its music, information and knowledge plans — in response to provide chain professional Joe Hudicka.

“Apple will seemingly take up a few of the tariff prices up entrance to maintain sticker costs steady, then go the remaining on to shoppers regularly via service bundles, system longevity and ecosystem upgrades,” he mentioned. “Customers will nonetheless pay, simply not unexpectedly.”

And no matter how the tariff drama performs out, the Wall Avenue Journal stories that Apple plans to boost iPhone costs later this 12 months. 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 rapidly introduced a 90-day pause on the reciprocal tariffs however left the baseline levies in place.

Trump’s lengthy touted tariffs as a solution to even the commerce deficit and lift income to offset tax cuts, though many economists say that tariffs might result in larger costs and will 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 onerous 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 an extra 50% tariff earlier than ultimately touchdown on the 145% tariff in opposition to 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 extra tariffs was momentary and that these merchandise would as a substitute be topic to a “semiconductor tariff.”

Even earlier than Trump introduced the tariffs, Apple’s greatest suppliers in India had shipped almost $2 billion price of iPhones in March, in response to customs data. Reportedly, Apple could supply its iPhones for the US market from India by the tip of 2026 — though maybe not all of them. And Trump just 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 may very well be prohibitively excessive, no less than for now, attributable to labor prices and logistics.

Tariffs, in principle, are designed to financially impression 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 normally — however not all the time — handed on to the buyer within the type of larger 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 in the event you do not want a brand new cellphone instantly, Holland recommends ready.

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

If you do not have the money readily available and are contemplating utilizing a bank card or purchase now, pay later plan simply to keep away from tariffs, be sure you have the cash to cowl the prices earlier than you begin accruing curiosity. With bank cards’ common rates of interest at the moment greater than 20%, the value of financing an enormous buy might rapidly 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 might’t pay it off in full in a single to 2 months, you may seemingly 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 Skilled Overview Board member. “I’d suggest that you simply pause on any massive purchases till the economic system is extra steady.” 

One solution to save on Apple merchandise, even when costs go up, is to purchase final 12 months’s mannequin as a substitute of the latest launch or a used one. And buying and selling or promoting a used one will help offset the fee much more.

“Apple has leaned into that with its Licensed Refurbished program, very like the auto business’s used automotive mannequin,” Hudicka mentioned. “This program helps prolong the lifespan of gadgets, conserving prospects within the Apple ecosystem longer whereas distributing the fee impression over time.”