Apple is considering increasing the prices of its iPhone series, which will launch this fall. The company is looking to tie the price increases to the new features and designs coming to the new iPhones, so the price hike could not be attributed to the U.S. tariffs on imports from China, according to people familiar with the matter, The Wall Street Journal reports.
According to CEO Tim Cook, the tariff policies are expected to cost Apple an additional $900 million in expenses this quarter. The iPhone 17 lineup, coming this fall, will reportedly feature new designs and a thinner model that will replace the current iPhone 16 Plus.
On Monday, the U.S. and China agreed to a 90-day temporary ceasefire on most of the reciprocal tariffs placed on each other to give room for further discussions and negotiation. However, a 20 per cent tariff imposed by President Trump on Chinese goods still stands, affecting smartphone imports. A separate “reciprocal” tariff on Chinese goods does not include smartphones and other electronics. Due to the Monday agreement, the tariffs on imports from China will temporarily fall from 125 to 10 per cent.
Most of Apple’s devices are assembled in China, but Cook said earlier in May that most iPhones coming to the U.S. in the April-June quarter would now be shipped from India. The Wall Street Journal reports that Apple plans to move some iPhone production to the U.S., which will likely take years.
According to Abhilash Kumar, an analyst with tech research firm TechInsights, India accounted for around 13 per cent to 14 per cent of global iPhone shipments last year, which is expected to double this year. However, that still wouldn’t be enough to meet iPhone demands in the U.S. and India.
