iPhone price in Pakistan may touch Rs1m amid US-China tariff war

ISLAMABAD: As the trade tensions continue to escalate between the United States and China over Trumps’ tariffs, Pakistani iPhone users may be caught in the crossfire.

With fresh US tariffs of up to 54 per cent on Chinese imports, American tech giant Apple — which assembles the majority of its iPhones in China — may soon have to raise prices globally.

China, in retaliation, announced Wednesday to raise tariffs on US products to 84%.

This tug of war could increase the iPhone prices in Pakistan to Rs1m.

iPhone is already among the most expensive smartphones in Pakistan due to taxes, import duties, and the depreciating rupee. The looming tariff increase, if passed on to consumers, could make the already pricey iPhone 16 and its Pro models even more expensive.

iPhone 16 price hike

Analysts suggest the iPhone 16 could see a 30 per cent to 43 per cent hike in its price worldwide.

In Pakistan, where even the cheapest iPhone 16 is currently priced at Rs317,000 and the iPhone 16 Pro Max is listed for Rs624,000, this could mean the most premium models may cross the Rs1 million mark — a psychological and financial threshold for many consumers.

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Speaking to the BBC, an Islamabad-based iPhone dealer clarified that while there is no official price hike yet, rumours are swirling about the potential for phones exceeding Rs1 million in the coming months.

“Unless Apple itself raises the prices, it’s unlikely we’ll see that number immediately. But if the US tariffs are fully passed on, it’s certainly possible,” he added.

How Apple might respond?

Apple has faced a 9.3 per cent drop in its stock value — its lowest since March 2020 — and stands to lose as much as $40 billion due to the tariffs, according to Rosenblatt Securities.

The company has begun shifting production to India and Brazil to reduce its reliance on China, but most iPhones are still produced in Chinese factories. This makes Apple particularly vulnerable to US-China trade disruptions.

In the US, Apple might delay price hikes until the launch of the iPhone 17 in September, thanks to stockpiling and instalment-based purchases through carriers.

However, in Pakistan, where consumers usually purchase iPhones outright and face additional local levies, prices are already inflated — reportedly 40 per cent higher than in the US.

The current iPhone 16 Pro Max, priced at $1,599 in the US (approx. Rs450,000), is selling for Rs624,000 in Pakistan — and that’s before any tariff impact.

With a 43 per cent price hike, US customers could see the iPhone 16 Pro Max selling for over $2,300, which, when translated into the Pakistani market (accounting for duties and exchange rates), could potentially push prices close to or beyond Rs1 million.

For Pakistani iPhone lovers, the choices are narrowing: either buy now before any global price shift, wait for local sellers to offload old stock at discounted rates, or consider more budget-friendly alternatives.

One thing is clear — in this global trade war, luxury gadgets like the iPhone are becoming even more of a premium item in developing markets like Pakistan.