HomeGlobal Economic NewsWSJ: Apple Aims to Raise iPhone Prices Without Blaming Tariffs

WSJ: Apple Aims to Raise iPhone Prices Without Blaming Tariffs

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Staff Reporter

Apple is reportedly looking at raising prices for its upcoming iPhone lineup this fall, aiming to do so without attributing the increases to tariffs on China. The company plans to introduce new features and design changes to justify the higher price points.

According to sources familiar with the matter, Apple is contemplating price hikes for its next generation of iPhones set to launch this fall. The tech giant intends to pair these potential increases with innovations, including a sleeker design, rather than blaming the adjustments on tariffs imposed during the Trump administration.

CEO Tim Cook has faced pressure due to the ongoing U.S.-China trade tensions, which threaten the company’s supply chain. In anticipation of tariffs, Cook increased inventory levels in March and shifted some manufacturing for the U.S. market to India. He noted earlier this month that a majority of iPhones shipped to the U.S. from April to June would be produced in India.

However, for its most lucrative models, like the Pro and Pro Max, production will largely remain in Chinese factories. While Indian facilities have the capacity to manufacture Pro models, the country’s infrastructure and technical capabilities aren’t yet equipped for mass production at the scale that China offers. These high-end iPhones feature advanced camera systems and larger batteries.

Apple executives are cautious about linking price increases to tariffs. A report in April suggested that Amazon might indicate the impact of tariffs to its customers, which the White House condemned as hostile, leading Amazon to quickly refute the notion.

In light of these challenges, Apple is exploring what supply-chain experts call the least unfavorable option: raising prices on the new iPhones to sustain profitability while finding justifications beyond tariffs for these increases. The specific features that might support these price hikes have yet to be disclosed.

If Apple adheres to its typical timeline, the new models set to debut this fall will be branded as the iPhone 17 lineup. Current models range from the standard iPhone 16 starting at $799 to the iPhone 16 Pro Max, which begins at $1,199. The upcoming lineup is expected to include a slimmer model to replace the current iPhone 16 Plus, priced at $899 in the U.S.

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