Is your iPhone about to cost an iFortune?

Answer: 

$675
(from $1,199 to $1,874)

Questions:

1. If a phone you wanted increased in price by a few hundred dollars, how would that affect your decision to buy it?
2. How do rising prices on popular products like phones affect people's budgets and spending habits overall?
3. Why might a company choose to raise prices instead of absorbing the extra cost themselves?

Here are the ready-to-go slides for this Question of the Day that you can use in your classroom.

Behind the numbers (CBS News): 

The iPhone 16 Pro Max 256 GB, which is among the devices that are assembled in China, retails for $1,199. Under the new tariffs on Chinese imports, the price of the device could rise by $675, or 56%, lifting the price tag to $1,874, an April 9 analysts from UBS Investment Research shows.

The cost of an iPhone 16 Pro 128 GB, which is made in India and costs $999, could increase to $1,119, an increase of 12%, the investment bank found.

An April 3 analysis from Rosenblatt Securities found that the Cupertino, California-based company could raise iPhone prices by 43% to offset the effects of reciprocal tariffs.

About the Author

Dave Martin

Dave joins NGPF with 15 years of teaching experience in math and computer science. After joining the New York City Teaching Fellows program and earning a Master's degree in Education from Pace University, his teaching career has taken him to New York, New Jersey and a summer in the north of Ghana. Dave firmly believes that financial literacy is vital to creating well-rounded students that are prepared for a complex and highly competitive world. During what free time two young daughters will allow, Dave enjoys video games, Dungeons & Dragons, cooking, gardening, and taking naps.