In the Trump Tariff saga, Acer was the first company to announce a 10 percent price increase that will be burdened by consumers, but the Taiwanese’s market capitalization is nowhere near Apple’s, so it is understandable why it was forced to make this move. However, even the trillion-dollar titan is not immune to these effects, with analysts estimating that the company would need to raise the prices of its products, including iPhones, if it wants to allay the aftermath of these tariffs. The only problem is that, for Apple, no outcome will be pleasant.
The Trump tariffs could be absorbed by Apple, but the company could take a 3.1 percent hit in earnings across the 2026 calendar year
Whatever scenario is in front of Apple, the Trump tariffs will ensure that the Cupertino firm has to bear losses in some form or another. According to CNBC, Bank of America’s analyst Wamsi Mohan has warned that the company’s earnings could be impacted no matter what. Mohan has attempted to review various scenarios in which Apple can absorb these tariffs or pass those price increases to customers. In both aspects, the iPhone maker will be hammered.
For instance, if the technology behemoth remains firm and does not raise the prices, there would be a loss of 26 cents in earnings per share, or 3.1 percent, for the calendar year 2026. Alternatively, if Apple introduces a price bump of 3 percent, this move would result in an earnings per share drop of 21 cents, which is equivalent to a 2.4 percent drop for the same period. Mohan has assumed that the higher prices would result in Apple shipping fewer devices by 5 percent.
However, if raising the prices does not affect sales, which would be a miracle, the tariff hit to Apple would be even smaller. As a conclusion, Mohan estimates that the company would need to introduce a 9 percent price hike to all of its products to offset the deleterious effects of the Trump tariffs while also adjusting for a potential hit to its sales volume for the year. It is unclear what Apple’s final call will be, but Mohan believes the tariffs will be ‘manageable.’
News Source: CNBC
About the author: Omar Sohail is a reporter and analyst for Wccftech's mobile section, specializing in the technology and business of the mobile industry. His expertise lies in the intricate hardware supply chain, covering developments in semiconductor manufacturing, chip lithography, and camera sensor technology.
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