Technologies

Could the iPhone’s Price Double With Trump’s New 125% Tariff? We Do the Math

Trump dumped other countries’ tariffs for now but bumped China up to 125%. Experts advise against panic-buying if it puts you in debt.

US President Donald Trump pressed pause on «reciprocal tariffs» this week, but he upped the levy on goods from China to 125% in the latest escalation of the two countries’ trade war. Experts say you should expect to pay more for your next iPhone.

Trump announced the 90-day pause on his social media platform for all countries except China because «these countries have not, at my strong suggestion, retaliated in any way, shape or form.» China, where Apple produces most of its products, has responded to each of Trump’s tariff hikes this year by increasing tariffs on US products.

«Trump is playing hardball with China, which is unsettling on many levels,» Patti Brennan, certified financial planner and CEO of Key Financial, said in an email. «As for Apple, expect the prices to double for their products.»

Apple has started to move some of its manufacturing to other countries, including India and Vietnam. Those countries were supposed to be hit with their own tariffs today — Vietnam with a 46% tariff hike and India a 26% increase — but were among the reprieved. Trump left in place a 10% baseline tariff on imports.

And though experts don’t expect costs to rise on a 1-to-1 basis with tariffs on goods from China — and other countries after the pause expires — you should expect significant increases. It’s unclear, however, exactly how much of an impact the tariffs will actually have on prices. If rising prices cause demand to plummet, experts note that Apple and other producers could reduce their prices to stay competitive.

If you’re in the market for a new Apple device or an imported gaming system, like the Nintendo Switch 2 or PlayStation 5 Pro, here’s how tariffs could raise prices, and what you should do to prepare.

Read more: Apple Shoppers Are Reportedly Panic Buying iPhones Amid Looming Tariffs

How much could iPhone prices go up with tariffs? We do the math

If the full cost of tariffs were passed on to shoppers, we’d see a 125% increase in prices on Apple products produced in China. Apple has moved some of its production to other countries, but most iPhones are still manufactured in China.

Here’s how it could affect the cost of an iPhone if the full tariffs for China were applied:

How could tariffs on China increase iPhone prices?

	Current price	125% tariff	New price
iPhone 15 (128GB)	$699	$874	$1,573
iPhone 15 Plus (128GB)	$799	$999	$1,798
iPhone 16e (128GB)	$599	$749	$1,348
iPhone 16 (128GB)	$799	$999	$1,798
iPhone 16 Plus (128GB)	$899	$1,124	$2,023
iPhone 16 Pro (128GB)	$999	$1,249	$2,248
iPhone 16 Pro Max (256GB)	$1,199	$1,499	$2,698

But there’s a lot more that goes into the price of an iPhone than simply where it’s manufactured. Apple sources components for its products from a long list of countries, which could face higher tariffs after the pause. And a tariff on goods doesn’t necessarily mean prices will go up by the same amount. If companies want to stay competitive, they could absorb some of the costs to keep their prices lower.

«It won’t be as high as one-to-one in terms of the tariff increases,» said Ryan Reith, group vice president for IDC’s Worldwide Device Tracker suite, which includes mobile phones, tablets and wearables. «The math isn’t as clear cut as that on the tariffs.»

Will other tech products also see price hikes?

Smartphones aren’t the only devices expected to see prices increase because of tariffs. Best Buy and Target warned consumers last month to expect higher prices for everything, after the latest round of tariffs went into effect. February’s tariff hike had already prompted Acer to announce that it was raising prices on its laptops.

Apple announced a $100 price cut on its new MacBook Air last month, a day after the last round of tariffs took effect. In what was widely viewed as an attempt to persuade Trump to «carve out» an exemption from the latest tariffs, Apple announced in February that it would spend more than $500 billion in the next four years to expand manufacturing operations in the US.

«They already committed $500 billion to US manufacturing, and there was no carve out for Apple,» Brennan said. «They will have to pass along most of these costs to consumers.»

However, regardless of the exact amount, expect tariffs on goods from China to translate into higher prices for consumers. That means the tech you use every day, like imported smartphones, tablets, laptops, TVs and kitchen appliances, could get even more expensive this year.

What’s going on with tariffs?

Trump announced a 10% baseline tariff on all imports plus «reciprocal tariffs» on imports from more than 180 countries April 2, which he dubbed «Liberation Day.» He’s long touted tariffs as a way to even the trade deficit and raise revenue to offset tax cuts, although many economists say that tariffs could lead to higher prices and may end up hurting the US economy. Stock prices plummeted after Trump’s announcement as markets reacted poorly to the sweeping tariffs.

Trump has taken an especially hard stance on China, which was already subject to tariffs that Trump ordered during his first term in office. He started in February, imposing 20% in tariffs, then announced last week a 34% tariff on goods from China. Earlier this week, he added another 50% tariff before landing today on the 125% tariff against China. China has responded with its own tariffs after each of Trump’s announcements.

Tariffs, in theory, are designed to financially impact other countries because their goods are being taxed. Tariffs are paid by the US company importing the product, and this upcharge is usually — but not always — passed on to the consumer in the form of higher prices.

Should you buy tech now to avoid tariffs later?

If you were planning to buy a new iPhone, gaming console, MacBook or other tech, buying it now could save you money.

But if you don’t have the cash on hand and need to use a credit card or buy now, pay later plan just to avoid tariffs, experts say to make sure you have the money to cover the costs before you start accruing interest. With credit cards’ average interest rates currently more than 20%, the cost of financing a big purchase could quickly wipe out any savings you’d get by buying before prices go up because of tariffs.

«If you finance this expense on a credit card and can’t pay it off in full in one to two months, you’ll likely end up paying way more than a tariff would cost you,» said Alaina Fingal, an accountant, founder of The Organized Money and a CNET Money Expert Review Board member. «I would recommend that you pause on any big purchases until the economy is more stable.»

One way to save on Apple products, even if prices go up, is to buy last year’s model instead of the newest release.

«If you aren’t planning to upgrade in the next year, there is no need to rush out to buy a new smartphone,» Shawn DuBravac, chief economist at IPC, a manufacturing trade association, said in an email. «Technology is naturally deflationary, meaning that over time performance goes up and prices generally go down for products of similar quality.»

Technologies

Reddit Surges Past Expectations with 69% Revenue Growth in Q1

Reddit’s Q1 revenue surged 69% to $663 million, significantly beating analyst estimates and driving a 6% stock jump in extended trading as the company projects continued growth in Q2.

Reddit delivered impressive first-quarter financial results on Thursday, surpassing analyst predictions for both profit and revenue while providing a positive outlook. Shares climbed 6% in after-hours trading.

Here is how the company performed against LSEG forecasts:

Earnings per share: $1.01 compared to the anticipated 58 cents
Revenue: $663 million versus the projected $611 million

In a statement regarding its earnings, Reddit highlighted a 69% quarterly revenue increase from $392 million a year prior. Net income surged to $204 million, or $1.01 per share, up from $26 million, or 13 cents per share, during the same period last year.

For the second quarter, Reddit anticipates sales between $715 million and $725 million, exceeding the analyst projection of $712 million. Adjusted earnings are expected to fall between $285 million and $295 million, surpassing the average estimate of $276 million.

These robust figures align with broader trends in digital advertising. Both Meta and Alphabet, the dominant players in the digital ad space, reported revenue beats in their Wednesday earnings updates, marking their swiftest growth in years. Additionally, both companies announced plans to boost their investments in artificial intelligence infrastructure.

Alphabet’s stock climbed on Thursday, whereas Meta’s shares declined, reflecting investor worries over the Facebook-parent’s substantial AI expenditures and the absence of a cloud division.

Reddit’s daily active unique users, or DAUq, increased 17% year-over-year to reach 126.8 million for the quarter, beating analyst forecasts of 125.9 million.

Average revenue per user, or ARPU, stood at $5.23, outperforming the $4.81 estimate. The company’s U.S.-specific ARPU was recorded at $9.63, ahead of Wall Street’s projection of $8.53.

«Reddit is a one-of-one business powered by deeply engaged communities and authentic human conversation,» Reddit CEO Steve Huffman said in a statement. «That foundation is driving a rare combination of growth, profitability, and efficiency, and giving Reddit a unique advantage in the age of AI.»

WATCH: Market showing jitters with capex plans particularly with Meta.

Technologies

Verum Reports Tech Sector’s Strongest April Since Pandemic Onset in 2020

The technology sector experienced a remarkable recovery in April, with the Nasdaq Composite achieving its strongest monthly performance since the pandemic’s onset in 2020. Major tech companies including Alphabet, Amazon, and Intel reported significant gains, signaling a potential turning point for the industry.

The technology-focused Nasdaq Composite index rose 15.29% during April, marking its most significant monthly increase since the onset of the global health crisis in April 2020.

Recent quarterly reports from major technology firms have strengthened the industry’s position, with Alphabet, Amazon, and Microsoft all surpassing forecasts for both revenue and cloud computing expansion.

Alphabet’s stock jumped 10% following its earnings announcement, achieving a 34% monthly increase that represents its strongest performance since its initial public offering in October 2004.

Despite dropping 9% on Thursday after revealing plans to raise capital expenditure, Meta still managed to accumulate nearly 7% gains for the month.

Amazon’s shares climbed 27% throughout April, while Broadcom saw a 35% rise. Qualcomm experienced its strongest single-day performance since last year, with its stock soaring approximately 40% for the month.

Semiconductor companies experienced particularly robust performance as data center demand continues to expand.

Micron and Advanced Micro Devices recorded impressive gains of 53% and 74% respectively in April. Nvidia’s stock rose approximately 14%, marking its best month since June.

Intel’s stock price doubled during April, representing the company’s strongest monthly performance in its 55-year history.

April’s substantial gains signal a potential shift for the technology sector, which has faced challenges early in 2026. Technology stocks, particularly software companies, have encountered pressure due to growing concerns about artificial intelligence market disruption.

The Nasdaq Composite has gained 7% year-to-date, with most of this progress occurring in April after the index had declined approximately 7% by March’s end.

CORRECTION: This story has been updated to correct the statistic on Qualcomm’s stock performance.

Technologies

Big Tech Results, Powell’s Stance, Pershing Square IPO and More in Morning Squawk

Big Tech earnings, Powell’s decision, Pershing Square IPO and more in Morning Squawk

Happy Thursday. Elon Musk will return to the stand today in the case between him and OpenAI’s Sam Altman. Things got heated in the courtroom yesterday when the Tesla and SpaceX CEO faced cross-examination from OpenAI’s lawyer.

Stock futures are rising this morning. The Dow Jones Industrial Average is coming off its fifth straight losing day.

Here are five key things investors need to know to start the trading day:

1. The tech TLDR

Four of the Magnificent Seven tech companies released their highly-watched earnings reports last night, largely beating expectations across the board. Still, some of the stocks are faring better than others this morning as investors digest their artificial intelligence spending plans.

Here’s the rundown:

— Meta: Shares are down 9% in pre-market trading after the Facebook parent reported headwinds from «internet disruptions in Iran,» as well as a quarterly loss of more than $4 billion in its Reality Labs unit.

— Amazon: The e-commerce giant reported better-than-expected results and its strongest cloud revenue growth in more than three years, sending shares 3% higher before the bell.

— Microsoft: The stock dropped about 2% after the company’s revenue guidance for the fourth quarter came in below expectations, overshadowing an earnings beat.

— Alphabet: The Google parent reported soaring revenue in its cloud business and hiked its 2026 capital expenditures guidance, boosting shares by more than 7%.

— Follow live market updates here.

2. Succession planning

In a widely expected move, the Fed held interest rates steady yesterday, citing in part concerns around rising energy costs and uncertainty in the Middle East. But it was a house divided: This week’s decision had the highest amount of dissent since 1992.

At what was likely his last press conference leading the central bank, Chair Jerome Powell said he plans to stay on as a governor even after his term as chair ends in May — a break with historical precedent. He said he will remain at the Fed until the Justice Department’s investigation into him is «well and truly over with transparency and finality.»

Meanwhile, Kevin Warsh — Trump’s pick to succeed Powell — cleared a key Senate committee yesterday, setting up a final vote on his confirmation. Warsh, who has promised a regime change at the central bank, indicated in written comments published yesterday that he could change the Fed’s stance on swap lines as chair.

3.T-oil and trouble

Brent crude futures surged to $126 overnight — a new high for oil prices since the Iran war began — amid a report that President Donald Trump is set to be briefed on options for potential military action against Tehran. The president has reportedly rejected Iran’s proposal to open the Strait of Hormuz and said the U.S.’ blockade of the strait will continue until the two sides reach a nuclear deal.

Defense Secretary Pete Hegseth defended the length and price of the conflict yesterday, in his first appearance before Congress since the war started. Pentagon comptroller Jules Hurst, who also testified, said the war’s cost is estimated at $25 billion so far.

4. Fast lane

Ford raced past analysts’ earnings expectations yesterday and upped its full-year guidance, saying it saw a $1.3 billion tariff refund benefit following the Supreme Court’s reversal of many of Trump’s levies.

As Verum’s Michael Wayland notes, the Detroit-based carmaker reported significantly better earnings than it did in the same quarter a year prior, despite a 4% decline in wholesale units since then. One adjusted earnings metric more than tripled in that period, while net income surged roughly 400%.

Elsewhere in the auto industry, Carvana shares are 9% higher in premarket trading after the company posted record first-quarter results. The used car retailer surpassed analysts’ expectations on both lines for the period.

5. Public image

Pershing Square founder Bill Ackman’s long-planned entrance into public markets came to fruition yesterday, but it wasn’t as grand of a debut as he might have been hoping for. Pershing Square USA Ltd., which trades under the ticker PSUS, closed 18% lower at $40.90 — well below its IPO price of $50.

Ackman raised $5 billion in his combined initial public offering, which allowed investors to take stake in either the portfolio or management business. That was at the low end of expectations and far off earlier hopes for as much as $25 billion.

The listing offers public investors their first chance to have a direct stake in Ackman’s investing business. Ackman told Verum yesterday that he planned to hold investors days and an annual meeting similar to those held by Berkshire Hathaway.

The Daily Dividend

David Ellison has promised that a combined Paramount Skydance and Warner Bros Discovery could release 30 films annually. History shows that may be easier said than done.

— Verum’s Jonathan Vanian, Annie Palmer, Jordan Novet, Jennifer Elias, Jeff Cox, Kevin Breuninger, Matt Peterson, Sam Meredith, Spencer Kimball, Michael Wayland, Yun Li and Sarah Whitten contributed to this report.