Apple Inc. is reportedly preparing to increase the prices of its upcoming iPhone lineup slated for release this fall. However, the tech giant is intentionally avoiding associating this move with the ongoing U.S. tariffs imposed on goods imported from China—despite China being the main manufacturing hub for its products. This information comes from sources quoted in a report by the Wall Street Journal published on Monday.
Apple’s shares rose by 7% in early trading on the heels of broader market optimism following a temporary easing of tariff tensions between the United States and China. While both countries agreed to reduce some of the mutual duties that have disrupted international commerce, a 30% tariff on Chinese imports—including consumer electronics—still remains in effect in the U.S., further squeezing companies that depend on Chinese manufacturing.
Apple Caught Between Tariffs and Production Shifts
Apple continues to be one of the most notable American companies affected by the prolonged U.S.-China trade dispute, which intensified during the administration of former President Donald Trump. A series of tariffs targeting Chinese imports were enacted in recent years, leading to costlier supply chains and prompting multinational firms to rethink their manufacturing strategies.
While Apple has not issued a formal statement in response to the Wall Street Journal article, insiders suggest that the company is working on pairing any potential price increases with significant improvements in the upcoming iPhone models. One major enhancement includes a redesigned ultrathin form factor, which may help justify the new price tags to consumers.
Tariffs Driving Up Costs, Pushing Apple Toward India
Earlier this month, Apple announced that tariffs could inflate its operating costs by approximately $900 million for the April to June quarter alone. To help offset these expenses and minimize its exposure to Chinese trade restrictions, the company has accelerated efforts to move more iPhone production to India.
Apple also revealed that the majority of iPhones sold in the U.S. during the current quarter will be sourced from Indian manufacturing plants rather than Chinese facilities. This transition forms part of a larger strategy to diversify its supply chain and reduce dependency on a single country amid unpredictable trade dynamics.
Higher Prices May Risk Market Share
Though rumors about a potential iPhone price hike have circulated for months, analysts have warned that such a move could hurt Apple’s competitiveness. Rival smartphone manufacturers like Samsung have aggressively integrated artificial intelligence features into their devices—something Apple has been comparatively slow to implement.
Consumers may hesitate to pay more if Apple does not offer compelling upgrades, particularly in a market where other brands are positioning themselves as innovative and budget-friendly alternatives.
According to projections from Rosenblatt Securities, the base model of the iPhone 16—initially priced at $799—could ultimately cost American buyers as much as $1,142 once tariff-related costs are factored in. This represents a staggering 43% increase, which could deter some buyers despite Apple’s loyal customer base.
Apple’s Strategy: Focus on Innovation, Not Politics
The Wall Street Journal noted that Apple appears to be deliberately avoiding public commentary on the political aspects of tariff-induced pricing, choosing instead to concentrate on developing enhanced features and a modern design that can justify the increase in cost.
In contrast, other tech companies have faced political backlash for openly addressing the impact of tariffs. For instance, Amazon came under fire from the White House last month when its discount Haul brand considered labeling items with tariff-related import fees. The Trump administration criticized the move, accusing Amazon of taking a political stance.
Apple’s more measured approach suggests a preference for long-term brand stability over short-term political engagement. As it quietly moves production to new regions and upgrades its flagship devices, the company seems to be betting that consumers will embrace higher prices if the product continues to deliver on quality and innovation.
