A flood of panic-buying has started in anticipation of major iPhone price increases

AppleInsider

The never-ending talk of tariffs has people rushing to buy the best iPhone that they can afford now before it becomes significantly more expensive.

iPhone users are worried about a potential price increase.

Apple's stock prices continue to suffer, as President Trump's "Liberation Day" tariffs have caused concerns for analysts and casual iPhone users alike.

According to a Bloomberg report, published on Monday, Apple's US retail locations are as busy as they usually are during holiday seasons. Employees are often asked questions about increases in iPhone pricing, but Apple has reportedly provided no instruction or guidance.

Some stores allegedly experienced higher sales over the past weekend than they did in years prior, which serves as an indication of users' concerns over a potential price hike. The overall uncertainty of the situation has seemingly left people expecting the worst outcome for end consumers, as many iPhone users are now scrambling to get ahold of new devices in anticipation of major price increases.

The panic-buying is likely to continue in the days ahead, at least until a solution is reached. Apple could opt to increase the prices across its hardware platforms, or it could pass some of the costs on to its suppliers to maintain current pricing. In any case, the company will have to find a way to tackle President Trump's latest assortment of tariffs, as they could have further consequences.

On April 2, the Trump administration introduced a series of "reciprocal" tariffs, which had an overwhelmingly negative impact on Apple and its supply chain. There's now a 10% tariff on all goods coming into the United States, while China could face a staggering 104% tariff in the immediate future.

Many worry that Apple will pass these costs onto end consumers, with one report predicting a 43% iPhone price increase in September 2025. Apple has reportedly been stock-piling its current-generation devices, and the company supposedly plans to mitigate the costs of the Trump tariffs by importing more devices from India, which has a lower 26% tariff rate.

This approach would allow Apple to maintain prices in the short term, but a long-lasting solution, such as a tariff exemption, remains a distant possibility.

An order from President Trump is the only way Apple could secure a tariff exemption, as there are no other mechanisms through which it could file a request. Unlike last time, new tariffs have been implemented through the International Emergency Economic Powers Act (IEEPA).

Though it may seem unlikely at first glance, two separate reports have indicated there's a strong possibility of talks between Apple and the Trump administration. Apple CEO Tim Cook already has an established method of dealing with President Trump, where their conversations revolve around a singular issue of great significance to Apple.

Overall, Apple will likely minimize the impact of the Trump administration's "reciprocal" tariffs through increased imports from India, and by taking advantage of existing iPhone supply chain inventory in the short term.

This means that there's ultimately no cause for immediate alarm, as an iPhone 16 price hike seems unlikely, but an increase could be on the horizon for the iPhone 17 in September 2025.



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9secondkox2

So apple benefits from the panic buy now. Then when September hits and things have cooled a bit, apple benefits again from upgraders? Highly possible. Be interesting to revisit in 5 months. 

sitime

9secondkox2 said:

So apple benefits from the panic buy now. Then when September hits and things have cooled a bit, apple benefits again from upgraders? Highly possible. Be interesting to revisit in 5 months. 

Very few buying now are going to buy again just 5 months. This is demand that is being pulled forward. 

entropys

Panic demand being brought forward.  An alternative approach would be to just keep existing phones for a longer upgrade cycle. Which has the added benefit of seeing how things pan out.

edited April 7

apple4thewin

Interesting 🤔 we bought a 16 Pro Max and an 13” iPad Air for my grandmother over the weekend, not because of the tariffs but because she is visiting us and her 6th gen iPad has officially given up on loading tabs. Also ironically I updated my 2 younger sisters’ 8th gen iPad to the 13” Air the weekend prior since games couldn’t load or were unable to play due to requirements like Disney Dreamlight Valley requiring a higher chip.

foregoneconclusion

9secondkox2 said: Then when September hits and things have cooled a bit 

Things are definitely going to "cool off" when the obviously unconstitutional use of the IEEPA is ruled unconstitutional. 

blastdoor

entropys said:

Panic demand being brought forward.  An alternative approach would be to just keep existing phones for a longer upgrade cycle. Which has the added benefit of seeing how things pan out.

That’s what I’m doing. In general I’m going into hunker down mode. Cutting all inessential spending. 

eriamjh

9secondkox2 said:

So apple benefits from the panic buy now. Then when September hits and things have cooled a bit, apple benefits again from upgraders? Highly possible. Be interesting to revisit in 5 months. 

They won’t likely be the same people.  

The real question is does a significant quantity of potential buyers even know the tariffs are going to cause a price spike, however temporary or mid-term it could be?  

We’ll find out.  Some are going to get FAFOd.  

hammeroftruth

foregoneconclusion said:

9secondkox2 said: Then when September hits and things have cooled a bit 

Things are definitely going to "cool off" when the obviously unconstitutional use of the IEEPA is ruled unconstitutional. 

Let’s see if the Supreme Court has a spine first. 

mfryd

Apple can do what the country of Qatar did during the first Trump presidency: Pay an above market rent for a lot of expensive office space from Trump.   They didn't need the office space, and it remained empty.   But once they rented it Trump removed Qatar from the list of states that support terrorism.

Apple can certainly afford to throw enough money at Trump's businesses to get a tariff exemption.  It really does make sense for Apple from a business perspective.

mfryd

foregoneconclusion said:

9secondkox2 said: Then when September hits and things have cooled a bit 

Things are definitely going to "cool off" when the obviously unconstitutional use of the IEEPA is ruled unconstitutional. 

It's going to be interesting.  The Supreme Court has already demonstrated that they are willing to give Trump a lot of latitude.   They have already granted him immunity from criminal prosecution. Furthermore, the Trump administration has already shown that they are willing to defy court orders.   It turns out that the courts can't enforce their orders, that's up to the Department of Justice.  Our current Attorney General has already demonstrated that she is happy to disregard previously held positions on what is legal, and to simply follow Trump's wishes.  Court orders that Trump doesn't like are effectively unenforceable, and he can ignore them.

The only real oversight to Trump is Congress.  At the moment, they are afraid to go up against Trump.  Trump has demonstrated that he takes revenge against those not loyal to him.  All Trump needs to do is to say the word, and none of his followers will vote for anyone who isn't loyal.  This keeps Congress in line, as anyone who goes against Trump won't get reelected. 

At the moment, we are operating without a working system of checks and balances.  Many people are not worried, as they trust Trump to make good decisions, and therefore they like that he isn't being hampered by our Constitution and our traditional checks and balances.  On the other hand, some people think Trump is making bad decisions, and wish we had a working system of checks and balances to make sure the rule of law was being followed.

Of course, there have always been people on both sides who are happy to disregard laws they disagree with.  For instance, many think that we should not be deporting undocumented workers.  Many who hold this position think we should stop enforcing many immigration laws.   Others think we should change the immigration laws so that those who we want to stay, can stay legally.

Immigration isn't the only issue.  Under Federal law, marijuana is illegal everywhere in the USA.  While some states allow it, you can still be charged federally for it.  Currently the Feds are ignoring the Federal marijuana laws in states that approve of it.  Some people think that we should change the law, rather than ignoring it.

The bottom line is that I would not hold my breath waiting for the courts to put a stop to Trumps actions (again, some people think this is good, others think it is bad).

jfabula1

entropys said:

Panic demand being brought forward.  An alternative approach would be to just keep existing phones for a longer upgrade cycle. Which has the added benefit of seeing how things pan out.

Exactly what I’m thinking, thanks for
that entropys. If it still works perfectly why stressed it out.

ios_guy80

Sounds like the second quarter report on May 1 will be a good one with all this panic buying lol.

stabitha_christie

9secondkox2 said:

So apple benefits from the panic buy now. Then when September hits and things have cooled a bit, apple benefits again from upgraders? Highly possible. Be interesting to revisit in 5 months. 

That is some delusional spin.  

Since the election stock indexes have lost 20% in wealth. Well over 10 trillion dollars in wealth has gone poof! There are people that are retired and on fixed incomes that just saw their savings take a 20% cut. But we aren't done yet, the 20% reduction in wealth was just the first step. Now, in addition to a massive loss in wealth we will all get to pay more for basic things. None of this needed to happen, there is no external force that caused this. It was all due to the decision making of a single person. But the cult members like @9secondkox2 are living in a fantasy world where this is all really great, Dear Leader can do no wrong!  They spent two years complaining about inflation but cheerlead 10 trillion dollars of wealth evaporating from the economy.  

mfryd

Stabitha_Christie said:

9secondkox2 said:

So apple benefits from the panic buy now. Then when September hits and things have cooled a bit, apple benefits again from upgraders? Highly possible. Be interesting to revisit in 5 months. 

That is some delusional spin.  

Since the election stock indexes have lost 20% in wealth. Well over 10 trillion dollars in wealth has gone poof! There are people that are retired and on fixed incomes that just saw their savings take a 20% cut. But we aren't done yet, the 20% reduction in wealth was just the first step. Now, in addition to a massive loss in wealth we will all get to pay more for basic things. None of this needed to happen, there is no external force that caused this. It was all due to the decision making of a single person. But the cult members like @9secondkox2 are living in a fantasy world where this is all really great, Dear Leader can do no wrong!  They spent two years complaining about inflation but cheerlead 10 trillion dollars of wealth evaporating from the economy.  

This is what the country asked for.  Trump made it clear that this was his intention.

The people wanted a change, and that's what we got.

If you think Trump is right, then America will quickly come out of this better than before.  If you put more weight into what history and the vast majority of economists tell us, then we are in for a depression.   Time will tell who is right.

Frankly, until the economy stabilizes, and recovers, I would be surprised if any company was willing to make an investment in increasing US based manufacturing.

entropys

That’s right Mfryd, it is easy to forget that these policies are what Trump voters voted for. That they are likely to not work doesn’t matter as Trump promised to do them. Ironic that a politician actually moving to honour their election commitments might be just as harmful if not more so than the usual lying liar variety.

From the perspective voter in West Virginia, no doubt  they figure they have nothing to lose, and if it doesn’t work, it will bring down the progressives, mega rich and political class in Dc benefitting from the current/old system. The forgotten people will settle for destruction of that system, as it doesn’t work for them.

why it came to this is a question we all should be asking ourselves.

mfryd

entropys said:

That’s right Mfryd, it is easy to forget that these policies are what Trump voters voted for. That they are likely to not work doesn’t matter as Trump promised to do them. Ironic that a politician actually moving to honour their election commitments might be just as harmful if not more so than the usual lying liar variety.

From the perspective voter in West Virginia, no doubt  they figure they have nothing to lose, and if it doesn’t work, it will bring down the progressives, mega rich and political class in Dc benefitting from the current/old system. The forgotten people will settle for destruction of that system, as it doesn’t work for them.

why it came to this is a question we all should be asking ourselves.

Unfortunately, it will hurt the poor and middle class far more than the rich.  The tariffs are essentially a sales tax.   They will raise the price of consumer goods.  These purchases represent a larger percentage of income for the poor and middle class.  Higher retail prices will also lower consumer demand.  This results in more people out of work.  Again, this affects the poor and middle class more than the rich.

Rich people tend to have diversified portfolios.  They have savings to last them until the stock market comes back.  In the interim, they still receive stock dividends (albeit at a lower level than normal).

Fortunately for the wealthy, Trump has permanently lowered the tax rate on the upper class.  Unfortunately, the tax cuts he enacted for the rest of us, are about to expire.

The goo news about a depression, is that rich people can sell off a few stocks at a loss.  That loss can offset other gains.  If they play their cards right, they end up with no taxable income.

As to why it came to this, that's easy.  Trump is brilliant at marketing.  The Democrats think voters care about policy.  Trump understands that voters don't want to know details.  They vote for the guy that talks like they talk.  Trump promised to make things better.  Voters generally don't have the context to judge whether a plan is sound.  They just want to be told not to worry, and everything will be OK.  

For instance, we are in a situation where Trump is telling his base that his policies will make the economy stronger, and bring manufacturing back to the USA.  Most economists, business people, and history, tell us otherwise.

A cynical person might think that the real issue with the Department of Education is that it raised the level of education in the US.  If you were elected because voters were not equipped to evaluate your policies, you have a strong incentive to keep voters from being better educated.

stabitha_christie

mfryd said:

Stabitha_Christie said:

9secondkox2 said:

So apple benefits from the panic buy now. Then when September hits and things have cooled a bit, apple benefits again from upgraders? Highly possible. Be interesting to revisit in 5 months. 

That is some delusional spin.  

Since the election stock indexes have lost 20% in wealth. Well over 10 trillion dollars in wealth has gone poof! There are people that are retired and on fixed incomes that just saw their savings take a 20% cut. But we aren't done yet, the 20% reduction in wealth was just the first step. Now, in addition to a massive loss in wealth we will all get to pay more for basic things. None of this needed to happen, there is no external force that caused this. It was all due to the decision making of a single person. But the cult members like @9secondkox2 are living in a fantasy world where this is all really great, Dear Leader can do no wrong!  They spent two years complaining about inflation but cheerlead 10 trillion dollars of wealth evaporating from the economy.  

This is what the country asked for.  Trump made it clear that this was his intention.

The people wanted a change, and that's what we got.

If you think Trump is right, then America will quickly come out of this better than before.  If you put more weight into what history and the vast majority of economists tell us, then we are in for a depression.   Time will tell who is right.

Frankly, until the economy stabilizes, and recovers, I would be surprised if any company was willing to make an investment in increasing US based manufacturing.

I am going to disagree with your first sentence, totally agree with the rest. The majority of voters did not vote for this but a plurality certainly did. Sadly the majority couldn't agree on what they wanted and the plurality won. 

edited April 9

mfryd

Stabitha_Christie said:

mfryd said:

This is what the country asked for.  Trump made it clear that this was his intention.

The people wanted a change, and that's what we got.

If you think Trump is right, then America will quickly come out of this better than before.  If you put more weight into what history and the vast majority of economists tell us, then we are in for a depression.   Time will tell who is right.

Frankly, until the economy stabilizes, and recovers, I would be surprised if any company was willing to make an investment in increasing US based manufacturing.

I am going to disagree with your first sentence, totally agree with the rest. The majority of voters did not vote for this but a plurality certainly did. Sadly the majority couldn't agree on what they wanted and the plurality won. 

This time around, of the people who voted, the majority chose Trump.

People who don't vote are effectively casting a vote that matches the results of those that did vote.   I know people who did not vote because they didn't like either candidate.  They effectively voted for Trump.

Of course, those who believe in conspiracy theories "know" that the election was rigged, and Trump shouldn't have won at all...