According to Bank of America, Apple will need to raise prices by about 9% to mitigate the impact of the tariffs proposed by President Donald Trump. The company expects the tech giant to have to raise prices for iPhones, iPads and other products in this amount, assuming that all products will be subject to a tariff of at least 10%. Analyst Wamsi Mohan warned that the company’s revenue could take a hit regardless of its response. WAMSI’s analysis is as Wall Street and Main Street compete to predict the impact of Trump’s expropriation plan on imports. These concerns were raised after the president signed a memorandum last week to sign “mutual tariffs” against foreign countries. Apple has been under a microscope during ongoing tariff discussions. Stocks fell earlier this month after Trump announced a 10% tariff on China where Apple assembled most of its products. Bank of America’s Mohan reviewed Apple’s plans to continuously price pricing in the United States, or raised prices due to increased tariffs. He said if Apple does not raise prices, earnings per share would lose 26 cents, or 3.1% of the 2026 calendar year. Meanwhile, prices rose by about 3% over the same period, down 21 cents, equivalent to 2.4% of the slideshow. This is because analysts believe higher prices will reduce the number of devices sold by Apple by 5%. But if higher prices don’t lower sales, the tariff rate may be smaller, Mohan said. With that in mind, Mohan said a 9% price increase is needed to offset the burden of tariffs and add a potential sales hit. According to Mohan, Trump’s plan to reciprocity tariffs has brought potential solutions to Apple to avoid some taxes in China. He said while most iPhone models can now be made in India, mutual taxes are expected to be higher than the 10% fee facing China. Analysts say that after years of manufacturing transfer to the country, about 15% of iPhones are currently produced in India. Despite these calculations, Mohan reiterated his buy rating for Apple, saying the tariffs seemed “manageable.” His $265 target means a closing price of 8.4% on Tuesday. The stock rose slightly at its meeting on Wednesday, bringing its year-to-date loss to 2.3%. Apple announced a cheap iPhone 16E model on Wednesday that is enough to run artificial intelligence. AAPL YTD Mountain Apple, so far
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