As the tariff war between the United States and China escalates, global markets have tumbled. A growing concern among individuals, both abroad and in Pakistan, is whether they can continue to afford their annual subscription fees for the ultimate status symbol: the iPhone upgrade.

The line, "Designed by Apple in California, Assembled in China", once a symbol of class, is now being read as ‘$$$’ by consumers as both countries continue to tack tariffs onto each other. A certified financial planner has predicted that the price of Apple products could surge by 20 to 40 percent - causing many existing users to rush to upgrade their phones before prices are revised upwards.

 

Fears of Apple product prices rising arose when US President Donald Trump levied unilateral tariffs with reports suggesting that the tariff rate on Chinese goods entering the US was 54 percent. These fears intensified when China retaliated against the US by slapping a 34 percent retaliatory tariff on the US.

 

Reports claim that Trump took to social media and responded to Beijing by threatening an additional 50 percent in tariff rates, which could bring the total tariffs on China to a staggering 104 percent. There are no undone concerns regarding possible spikes in the prices of Apple products. 

Currently, the price of the iPhone 16 rests at $799 in the US, which, for reference, translates to about 224,000 Pakistani rupees (PKR). With input costs rising for Apple, the company has to decide between protecting profit margins by raising prices or maintaining the current sales volume by keeping prices unchanged.

 

If Apple decides to raise prices and pass on the financial burden to consumers, the iPhone 16 could retail for approximately $1,142 in the US, which is about PKR 320,000. 

 

The iPhone 16 Pro Max’s price could reportedly surge by 43 percent from $1,599 to $2,300. In rupees, the US retail price of the iPhone 16 Pro Max has increased by PKR 200,000.

 

However, the figures above are retail prices that US consumers would face and are expected to be much higher for Pakistan - in the case of a price hike by Apple. As per reports, some iPhone models could potentially surge past Rs.1 million, largely because of the slew of duties and taxes that Pakistan imposes on its own trading partners.

An official confirmation of price hikes has not been reported yet, and the decision rests with the company’s executives back in Apple’s headquarters in California.