Rising iPhone Prices: How US Tariffs Are Shaking Pakistan’s Tech Sector
Agencies
Islamabad: The imposition of a fresh wave of tariffs by the United States on Chinese imports could send shockwaves through global supply chains, with Apple Inc.’s flagship product, the iPhone, set to experience a significant price hike.
Experts warn that these tariffs, imposed under former US President Donald Trump’s trade offensive, could increase retail prices by as much as 43 percent, potentially impacting consumers worldwide, including in Pakistan.
The United States has recently imposed a 54 percent tariff on goods imported from China, which includes essential components used in consumer electronics.
Apple, a major player in the tech industry that manufactures a significant portion of its iPhones in China, faces tough decisions about whether to absorb these additional costs or pass them on to consumers.
Should Apple choose the latter, the price of the iPhone 16 series could increase drastically, with the iPhone 16 Pro Max potentially rising from $1,599 to $2,300 in the US. Other variants, including the base iPhone 16 and iPhone 16e, could see similar price surges.
In Pakistan, where iPhones have long been a coveted status symbol, the price impact is already being felt. Current retail prices for the iPhone 16 series in the country are substantial, with the iPhone 16 Pro Max 1TB priced at Rs. 715,499 and the iPhone 16 Pro 1TB listed at Rs. 674,499. With the new tariffs potentially driving up costs further, consumers in Pakistan could see a sharp increase in these figures, leaving many unable to afford the latest high-end models.
Experts predict that the broader implications of the tariff escalation could ripple across Apple’s entire product range, including iPads, MacBooks, and accessories. This raises concerns not only for Pakistani consumers but also for the local economy, which may face reduced demand for high-end electronic goods amidst ongoing inflationary pressures.
Apple’s stock dropped 9.3 percent on Thursday in response to the news, marking its steepest decline since March 2020. As the company sells over 220 million iPhones annually, with the US, China, and Europe being its primary markets, any disruption to its production and pricing could have far-reaching consequences.
In an effort to mitigate the impact of the tariffs, analysts suggest that Apple may consider diversifying its manufacturing operations to other countries such as India or Vietnam. This shift could be essential for the tech giant to maintain its competitiveness in the face of escalating trade tensions between the United States and China.
For Pakistan’s tech-savvy consumers, these developments bring a sense of uncertainty. As iPhone prices soar due to tariffs and inflation, the dream of owning the latest Apple devices may remain out of reach for many. The price hike could also alter consumer behavior, with people possibly opting for lower-cost alternatives or postponing upgrades altogether.
The situation highlights the vulnerability of global supply chains and the potential for escalating trade conflicts to affect consumers on a personal level. As tensions between the world’s largest economies persist, the long-term impact on markets like Pakistan remains a growing concern for tech enthusiasts and everyday consumers alike.
