Apple stores hit with 'panic buying' over fear tariffs could increase prices

Apple has long maintained its prices for its various products, particularly its iPhones, but due to President Trump's recent tariffs on foreign countries, Apple could be forced to increase iPhone prices.

The fear of Apple having to increase its prices for its iPhone models has spread to consumers who have reportedly been flooding Apple stores in a flurry of "panic buying," according to Bloomberg reporter and Apple insider Mark Gurman.

Notably, Apple has been hanging onto the $999 price tag of its flagship iPhone model for quite some time, and with tariffs now threatening Apple's sources of production, the company may finally have to increase prices above that $999 mark, which could significantly impact sales of that model due to it breaking the longstanding psychological threshold that many consumers may not want to pass -- even if they are on payment plans for the device.

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Despite Apple's efforts to insulate itself from being impacted by Trump's tariffs through diversifying its production lines away from China, Trump's tariffs have still hit many of the regions where Apple sources its materials. So, what is going to happen?

Gurman writes in his latest Power On newsletter that Apple is more than likely pushing its component makers and manufacturing partners to reduce pricing to fall in line with the new tariffs. Additionally, the Bloomberg reporter writes Apple is more than likely prepared to eat some of the new cost, especially considering that Apple's margin on its products is approximately 45%.

Despite those two aforementioned points supporting iPhones remaining at the same price, Gurman writes Apple is still in assessment mode and is considering a price adjustment, with the optics of a price adjustment being slightly favorable considering the wider factors at play.