Analyst believes Apple will ‘absorb most of the cost’ of tariffs, but price hikes still coming

Massive tariffs imposed by President Trump on the rest of the globe went into effect today. Amidst significant economic uncertainty, many are wondering what this means for the cost of goods in the US—including Apple’s products like the iPhone. One analyst lays out Apple’s tariff response options, and his belief that costs may not rise too badly for consumers. Apple’s tariff response may be more restrained than some expect Jeff Pu at GF Securities has shared a new research note outlining various expected scenarios for Apple’s tariff response. He mentions the following two options as most likely: Apple raises global prices by a small amount (3-6%) to help cover its extra costs in the US or the company raises the US market’s prices by 10-19% In either case, Pu notes, the effect on consumers is better than many have forecasted. That’s because of this key line: We believe that Apple will absorb most of the cost, given that the supply chain’s margin is thin with rising production cost ... Read full article.