iPhone Prices May Climb As Apple Looks To Offset Trump Tariff Impact: Report
While the Trump administration has previously targeted Amazon for passing on tariff-related costs, Apple seems intent on avoiding the same political scrutiny.
Apple may be gearing up to raise the prices of its next-generation iPhones, but it's treading carefully to avoid pinning the hikes on US-China trade tensions, according to a report by The Wall Street Journal. The tech giant is reportedly exploring price increases for its upcoming fall lineup while keeping public messaging focused on innovation rather than international politics.
New iPhones, New Prices — But Don’t Mention Tariffs
As per the WSJ report, Apple is reluctant to associate potential price jumps with the steep US tariffs on Chinese imports, even though most iPhones are assembled in China and now face a 30 per cent levy. This cautious stance comes as the company tries to walk a fine line between maintaining profitability and avoiding consumer backlash.
Raising prices may help Apple manage the extra costs caused by the tariffs, which have strained supply chains and nudged the company to diversify production. “Apple said earlier this month that tariffs were expected to add about $900 million in costs during the April-June quarter and that it would source a majority of the iPhones sold in the US in the period from India.”
Shifting Supply Chains and Soaring Costs
With US-China trade tensions still simmering — especially following multiple tariff rounds initiated by President Donald Trump — Apple has been one of the highest-profile companies caught in the crossfire. In response, the firm has accelerated efforts to shift production to India, a move aimed at reducing its exposure to Chinese manufacturing.
Meanwhile, projections from Rosenblatt Securities suggest that the cheapest iPhone 16, which debuted at $799, could end up costing up to $1,142 once tariff-related costs are factored in — a whopping 43 per cent increase. That kind of bump might be difficult to swallow for consumers, especially in a market where competitors like Samsung are stepping up their offerings with AI-driven features.
Justifying the Jump with Sleek New Designs
To soften the blow of potential price increases, Apple is reportedly planning a design overhaul that includes a new ultrathin form factor. The idea is to pair higher costs with noticeable product enhancements, creating a more convincing case for consumers to spend more.
The company has not issued an official comment on the WSJ report. However, the possibility of price adjustments comes amid broader speculation that Apple’s pricing strategy could define its performance in a highly competitive smartphone market. “The company did not immediately respond to a Reuters request for comment on the WSJ report, which cited people familiar with the matter.”
While the Trump administration has previously targeted Amazon for passing on tariff-related costs, Apple seems intent on avoiding the same political scrutiny, even as it navigates a complex global landscape.
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