Apple May Raise iPhone Prices Amid Tariff Pressures and New Features

Apple is considering increasing prices for its upcoming iPhone lineup this autumn, according to a report by the Wall Street Journal.

Credit: APPLE

The company is reportedly aiming to avoid linking the potential price hikes to U.S. tariffs on Chinese imports, despite most of its devices being assembled in China.

Apple shares rose 7% in premarket trading on Monday, following news that Washington and Beijing agreed to temporarily reduce reciprocal tariffs. However, Chinese imports will still face a 30% levy in the U.S.

The tech giant has been significantly affected by escalating U.S.-China trade tensions, which have intensified due to a series of tariffs introduced by President Donald Trump.

Raising iPhone prices could help Apple offset increased costs caused by the tariffs, which have disrupted global supply chains and prompted the company to shift more production to India.

Earlier this month, Apple stated that tariffs were expected to add about USD 900 million in costs during the April-June quarter. The company also said it would source most iPhones sold in the U.S. during that period from India.

Analysts have speculated for months about a potential price increase, though they caution that higher prices could reduce Apple’s market share. Competitors like Samsung are attracting consumers with AI features that Apple has yet to widely implement.

The base model of the iPhone 16 launched in the U.S. at USD 799, but tariffs could push the price up to USD 1,142, a 43% increase, according to projections from Rosenblatt Securities.

The Wall Street Journal report noted that Apple plans to pair the price hikes with new features and design changes, including an ultrathin design, to help justify the increase.

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• Apple may raise iPhone prices in autumn 2024

• Company aims to avoid linking hikes to U.S.-China tariffs

• Tariffs could add USD 900 million in costs for Apple

Source: REUTERS