iPhone Prices Spike Amid Tariff Concerns
23 April 2025 · Uncategorized ·
Apple iPhones are experiencing price increases and shortages on secondary markets despite a traditionally slow sales period, according to recent reports from Phoenix WEEKLY Finance. Dealers and second-hand stores have successively raised iPhone prices and buyback rates; news of rising iPhone values by as much as 500 yuan within nine days recently trended on Weibo. Comparing channel pricing between early March and mid-April reveals slight price increases across all models in the iPhone 16 series, with Pro versions experiencing more significant hikes. For example, an iPhone 16 Pro Max (256GB) was priced around ¥8,500 on April 1st but rose to approximately ¥9,080 by April 10th.
A channel dealer informed Phoenix WEEKLY Finance that prices fluctuate daily and recent increases were driven primarily by panic buying. While iPhone pricing has stabilized somewhat compared with late March, it still increased by roughly ¥200-¥300 per unit. Secondhand market platforms also reported persistent shortages for all models in the 16 series alongside slight buyback price increases.
These fluctuations are largely attributed to America's "reciprocal tariffs" policy impacting global tech industries; Apple is particularly vulnerable as over eighty percent of its products are assembled in China. Although specific taxes on semiconductors and smartphones remain unfinalized, concerns about potential tariff issues persist within the company.
On April 11th evening, U.S. Customs and Border Protection announced that federal authorities would temporarily exempt electronic devices like smartphones and computers from reciprocal tariffs—a move Bloomberg reported could alleviate price pressures for American consumers while benefiting tech giants such as Apple Inc. and Samsung Electronics Co., Ltd. However, less than thirty-six hours later, former President Trump reversed this decision.
Data indicates over eighty percent of the 200 major suppliers in Apple's global supply chain have factories located in China. If new tariffs (estimated at 54%) are fully passed on to consumers, iPhone prices across various models would rise significantly; premium versions like an iPhone 16 Pro Max could exceed $2300 or approximately ¥16800.
In contrast, Apple's official retail stores and online flagship store maintain original pricing without increases. However, secondary dealerships have already implemented price adjustments. Analyst Lin Zhi predicts that upcoming models in the iPhone 17 series will likely also see increased prices.
Price surges are generally undesirable for Apple; Counterpoint Research data from Q1 of 2025 showed Apple surpassed Samsung as the global market leader—a result largely due to the release and expansion into emerging markets with more affordable iPhones like the iPhone 16e. However, in China, where Pro series products exceed government subsidy policy ranges, shipments have declined, placing Apple behind competitors such as Xiaomi, Huawei, OPPO, and vivo.
To maintain market competitiveness amid these challenges—which directly threaten high profit margins—Apple needs to accelerate its global supply chain diversification through technological innovation; even emergency air transport of hundreds of tons from India cannot effectively address the complexity of this situation.
For domestic phone manufacturers like Xiaomi and Huawei, the sudden tariff war presents a challenge to their "price balancing act." Price remains a core consideration for consumers in the consumer electronics industry regardless of product iterations.
A mobile insider revealed that a subsidy line of ¥6000 serves as a crucial benchmark for Chinese smartphone makers; most models outside foldable phones and ultra-high-end flagships typically fall within this range. According to China's national subsidies policy, purchasing phones under ¥6000 can qualify for discounts up to 15%, capped at ¥500.
This means that phone units priced above approximately ¥3333 will receive greater subsidy benefits relative to lower-priced models. Consumers in the price range between ¥3000 and ¥4000 are particularly sensitive to pricing, with even a difference of just ¥200 potentially influencing their upgrade decisions.
Conversely, high-end market consumers prioritize brand reputation and configurations over price sensitivity. Low-cost models under ¥2000 using less advanced or domestic chips will likely experience relatively limited tariff impact within the Chinese market.
Fudan University's China Institute Associate Researcher Liu Dian told Phoenix WEEKLY Finance that while localization rates of key components like batteries and screens have increased in recent years, dependence on American technology—particularly for premium chipsets—remains high. A Qualcomm flagship chipset can account for approximately 30% of a phone’s selling price; therefore, tariff increases leading to higher costs could result in domestic phones experiencing overall prices rising by more than ten percent.
Looking ahead, Liu Dian emphasized that Chinese manufacturers are accelerating supply chain diversification and technological autonomy efforts aimed at reducing reliance on American chips. He concluded with the suggestion that local phone makers should continuously focus on reshaping their supply chains and advancing technology independence to address long-term challenges posed by tariff wars.
A channel dealer informed Phoenix WEEKLY Finance that prices fluctuate daily and recent increases were driven primarily by panic buying. While iPhone pricing has stabilized somewhat compared with late March, it still increased by roughly ¥200-¥300 per unit. Secondhand market platforms also reported persistent shortages for all models in the 16 series alongside slight buyback price increases.
These fluctuations are largely attributed to America's "reciprocal tariffs" policy impacting global tech industries; Apple is particularly vulnerable as over eighty percent of its products are assembled in China. Although specific taxes on semiconductors and smartphones remain unfinalized, concerns about potential tariff issues persist within the company.
On April 11th evening, U.S. Customs and Border Protection announced that federal authorities would temporarily exempt electronic devices like smartphones and computers from reciprocal tariffs—a move Bloomberg reported could alleviate price pressures for American consumers while benefiting tech giants such as Apple Inc. and Samsung Electronics Co., Ltd. However, less than thirty-six hours later, former President Trump reversed this decision.
Data indicates over eighty percent of the 200 major suppliers in Apple's global supply chain have factories located in China. If new tariffs (estimated at 54%) are fully passed on to consumers, iPhone prices across various models would rise significantly; premium versions like an iPhone 16 Pro Max could exceed $2300 or approximately ¥16800.
In contrast, Apple's official retail stores and online flagship store maintain original pricing without increases. However, secondary dealerships have already implemented price adjustments. Analyst Lin Zhi predicts that upcoming models in the iPhone 17 series will likely also see increased prices.
Price surges are generally undesirable for Apple; Counterpoint Research data from Q1 of 2025 showed Apple surpassed Samsung as the global market leader—a result largely due to the release and expansion into emerging markets with more affordable iPhones like the iPhone 16e. However, in China, where Pro series products exceed government subsidy policy ranges, shipments have declined, placing Apple behind competitors such as Xiaomi, Huawei, OPPO, and vivo.
To maintain market competitiveness amid these challenges—which directly threaten high profit margins—Apple needs to accelerate its global supply chain diversification through technological innovation; even emergency air transport of hundreds of tons from India cannot effectively address the complexity of this situation.
For domestic phone manufacturers like Xiaomi and Huawei, the sudden tariff war presents a challenge to their "price balancing act." Price remains a core consideration for consumers in the consumer electronics industry regardless of product iterations.
A mobile insider revealed that a subsidy line of ¥6000 serves as a crucial benchmark for Chinese smartphone makers; most models outside foldable phones and ultra-high-end flagships typically fall within this range. According to China's national subsidies policy, purchasing phones under ¥6000 can qualify for discounts up to 15%, capped at ¥500.
This means that phone units priced above approximately ¥3333 will receive greater subsidy benefits relative to lower-priced models. Consumers in the price range between ¥3000 and ¥4000 are particularly sensitive to pricing, with even a difference of just ¥200 potentially influencing their upgrade decisions.
Conversely, high-end market consumers prioritize brand reputation and configurations over price sensitivity. Low-cost models under ¥2000 using less advanced or domestic chips will likely experience relatively limited tariff impact within the Chinese market.
Fudan University's China Institute Associate Researcher Liu Dian told Phoenix WEEKLY Finance that while localization rates of key components like batteries and screens have increased in recent years, dependence on American technology—particularly for premium chipsets—remains high. A Qualcomm flagship chipset can account for approximately 30% of a phone’s selling price; therefore, tariff increases leading to higher costs could result in domestic phones experiencing overall prices rising by more than ten percent.
Looking ahead, Liu Dian emphasized that Chinese manufacturers are accelerating supply chain diversification and technological autonomy efforts aimed at reducing reliance on American chips. He concluded with the suggestion that local phone makers should continuously focus on reshaping their supply chains and advancing technology independence to address long-term challenges posed by tariff wars.