Apple is considering increasing the prices of its forthcoming iPhone models this fall, while aiming to detach any potential hikes from the US tariffs imposed on imports from China, according to a report from the Wall Street Journal published on Monday.
In premarket trading, Apple’s shares saw a rise of seven percent, reflecting overall gains in the market following an agreement between Washington and Beijing to temporarily reduce reciprocal tariffs. However, Chinese imports will continue to face a 30 percent levy in the United States.
The tech giant finds itself amid the escalating US-China trade tensions that have heightened significantly in recent months, predominantly due to a series of tariffs introduced during President Donald Trump’s administration.
Apple has yet to respond to a request for clarification from Reuters regarding the Wall Street Journal’s report, which referenced insiders familiar with the situation.
Implementing price increases could provide Apple with a buffer against heightened costs resulting from tariffs that have disrupted global supply chains, leading the company to shift more manufacturing operations to India.
This month, Apple revealed that tariffs were predicted to impose an additional $900 million (approximately Rs. 7,638 crore) in costs during the second quarter and indicated a strategy to source most iPhones sold in the US during that time from India.
Market analysts have speculated for several months about a possible price increase from Apple. However, they caution that such a decision could lead to a loss of market share, particularly with competitors like Samsung enticing consumers with advanced AI features, which Apple has been slower to integrate.
For context, the entry-level iPhone 16 model is expected to launch in the US with a starting price of $799, but projections from Rosenblatt Securities suggest that due to tariffs, the price could escalate to as high as $1,142 (approximately Rs. 96,918), marking a 43 percent increase.
The Wall Street Journal report also noted that Apple is exploring the idea of pairing any price increases with innovative features and design modifications, including a slim new design, to possibly justify the higher costs.
In a related note, Amazon.com faced scrutiny from the White House last month after its low-cost Haul unit considered listing import fees due to US tariffs, which led to accusations from the Trump administration of the company engaging in unfavorable political behavior.
© Thomson Reuters 2025
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
