Worried about a $2,300 iPhone? How US tariffs are causing tech buyers to scramble

Technology is woven into the fabric of our daily lives, from the smartphones we use to the AI systems that power our devices. Yet, a significant portion of this tech, including the critical chips and processors, is manufactured overseas and then shipped to the U.S. This reliance on international production has become a hot topic, especially with the Trump administration's recent tariff policies targeting foreign trade partners. These tariffs are set to shake up the prices of the tech products we rely on.

If you're thinking about upgrading your phone or buying new tech, you might want to do it sooner rather than later. Here's why.

The Tariff Impact

Tariffs mean higher costs for goods imported into the U.S., and this directly affects companies that import tech parts or finished devices. How these increased costs translate to consumer prices depends on how companies decide to handle them. They might absorb the costs, pass them on to you through higher prices, or use a mix of both strategies.

Some tech giants have already hinted at price increases. For instance, Acer's CEO Jason Chen told The Telegraph in February that they would hike prices by 10% to cover tariff costs. Meanwhile, Best Buy's CEO Corie Barry mentioned during a March earnings call that price increases for American consumers were "highly likely."

Other companies are adjusting their operations in response. Nintendo delayed preorders for its new Switch 2 in the U.S. shortly after its public launch, likely due to reevaluating costs. Apple, according to a Wall Street Journal report, was considering shifting more iPhone production to India to dodge high tariffs on China. However, with the latest round of tariffs now hitting India and Vietnam, where Apple also has manufacturing facilities, the situation has become even more complex.

A $2,300 iPhone?

You might have come across headlines suggesting that the iPhone could cost up to $2,300. While Apple hasn't confirmed any specific price hikes, a Reuters report, citing Rosenblatt Securities analysts, suggested that a 43% increase could be on the cards if Apple passes on higher component costs to consumers. This would push the price of the iPhone 16 Pro Max, with its 6.9-inch display and 1TB of storage, from $1,599 to a staggering $2,300.

Another example comes from a TechInsights analyst who told The WSJ that the hardware cost of the iPhone 16 Pro (256GB) is around $550, with a consumer price of $1,100. Tariffs could increase that hardware cost to $850, potentially raising the overall price by about $300 if Apple maintains its profit margins.

Customers are already responding to these looming price hikes. A Bloomberg report noted a surge in panic-buying at Apple Stores across the country over the weekend, as people rushed to buy iPhones before prices go up.

Beyond iPhones, tariffs will likely affect a wide range of tech products. CBS News has created a price tracker with graphs showing potential price impacts on various products, including fruits and vegetables, cars and trucks, and raw materials like aluminum, which are often used in tech.

Should You Buy Tech Now?

Deciding when to buy tech is a personal choice influenced by your needs and budget. Given the expected price increases, if you need a new device, now might be a good time to buy.

Another option is to consider refurbished products. These are already in the U.S. and often come with significant discounts. Popular sites like Gazelle and BackMarket offer a range of refurbished devices.

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