Apple weighs iPhone price hikes amid tariff concerns

PanARMENIAN.Net - Apple is reportedly contemplating an increase in prices for its upcoming fall iPhone lineup, aiming to introduce new features and design enhancements.

As Reuters reports, citing a publication in the WSJ, the company is cautious to avoid attributing these potential price hikes to U.S. tariffs on Chinese imports, despite the majority of its devices being assembled in China.

The U.S. and China recently agreed to reduce reciprocal tariffs, with U.S. tariffs on Chinese goods dropping to 30% from 145%, and China's tariffs on U.S. goods decreasing to 10% from 125%. However, a 20% tariff on smartphones remains in place, contributing to increased costs for Apple. CEO Tim Cook stated that these tariffs are expected to add approximately $900 million in costs for the April-June quarter.

To mitigate the impact, Apple has shifted a significant portion of its iPhone production for the U.S. market to India. Nevertheless, high-end models like the Pro and Pro Max continue to be primarily manufactured in China due to India's current production limitations. Analysts suggest that it may take years for India to match China's capacity for producing these advanced models.

The anticipated price increases are projected to coincide with the introduction of new features, including an ultrathin design and potential AI capabilities. Analysts warn that while these enhancements may justify higher prices, they could also risk reducing Apple's market share, especially as competitors like Samsung offer advanced AI features.

Apple has not officially commented on the reported pricing plans.