In the ongoing saga of the Trump tariffs, Acer was the first to declare a 10 percent price increase, a burden shifted to consumers. This decision is understandable given that the company doesn’t have the same financial muscle as tech giant Apple. However, even Apple, with its trillion-dollar valuation, may not escape the price hikes caused by these tariffs. Analysts are forecasting that Apple may need to increase the cost of its products, including its signature iPhones, to mitigate the impact. Unfortunately, for Apple, there’s no easy way out.
For Apple, the repercussions of the Trump tariffs are significant, and the company is poised to face financial strain in various scenarios. According to Bank of America analyst Wamsi Mohan, Apple’s earnings could be affected regardless of its approach. Mohan has explored several scenarios in which Apple might absorb these increased costs or pass them on to consumers. Either way, the company faces financial pressure.
Should Apple choose not to increase prices, it could see a 26-cent loss in earnings per share, equating to a 3.1 percent decline for the calendar year 2026. On the other hand, if Apple decides to raise prices by 3 percent, the company would still experience a decline, with a 21-cent earnings per share drop or a 2.4 percent decrease for the same period. This prediction assumes that higher prices would lead to a 5 percent reduction in units shipped.
In the unlikely event that price increases do not impact sales, Apple might endure a less severe financial blow. However, to fully counteract the effects of the tariffs and adjust for possible sales dips, Mohan suggests that Apple would need to implement a more substantial 9 percent price hike across all products. While it’s still unclear which path Apple will take, Mohan opines that the situation, albeit challenging, will remain manageable.
