Apple Inc. is reportedly considering price increases for its upcoming iPhone lineup this fall but is reluctant to directly tie the hike to rising U.S. tariffs on Chinese imports, according to the Wall Street Journal. While the tech giant’s shares rose 7% in premarket trading following news of a temporary tariff reduction agreement between Washington and Beijing, Chinese-made goods, including most iPhones, still face a 30% import levy in the U.S.
The escalating U.S.-China trade tensions, sparked by a wave of tariffs introduced under former President Donald Trump, have placed Apple in a difficult position, as most of its products are assembled in China. Though the company has started shifting more iPhone production to India, it acknowledged that tariffs are expected to cost it around $900 million in the April-June quarter, with a majority of iPhones sold in the U.S. during that period being sourced from India.
Industry analysts have long anticipated that Apple might raise iPhone prices to offset mounting costs, though such a move risks pushing price-sensitive customers toward rivals like Samsung, which is already offering smartphones with advanced AI features. Rosenblatt Securities recently projected that the cheapest iPhone 16 model, originally priced at $799, could cost as much as $1,142 with tariffs, representing a 43% increase.
To mitigate backlash, Apple is reportedly planning to bundle the price hike with enhanced features and a sleek ultrathin design in the new models, which may help justify the higher cost. The company has not officially commented on the report, but its careful strategy stands in contrast to other firms like Amazon, which faced political pushback after factoring tariffs into consumer prices.