Apple is considering raising prices for its upcoming fall iPhone lineup, sources say, as it introduces new features and design updates, including an ultrathin model.
The move aims to offset rising costs linked to ongoing U.S. tariffs on Chinese goods without appearing to blame the price hike on trade policy, reports The Wall Street Journal.
Although a recent U.S.-China deal suspended most tariffs, a 20 percent levy imposed by President Trump on Chinese products, including smartphones, remains. To navigate the pressure, Apple has begun shifting U.S.-bound iPhone production to India, which CEO Tim Cook said now supplies most U.S. shipments for the April-June quarter.
However, Apple’s premium Pro and Pro Max models—featuring advanced cameras and larger batteries—are still mainly assembled in China. While India can produce Pro models, its capacity and infrastructure are not yet sufficient for large-scale production.
With Apple unlikely to fully offset China’s tariff costs through supplier savings, raising prices is seen as the “least-bad” option to maintain profit margins. Still, the company is cautious about attributing any price hikes to tariffs, wary of political backlash. Executives are reportedly exploring ways to justify higher prices through added features or design enhancements.
Jefferies estimates 36–39 million of the 65 million iPhones sold in the U.S. last year were high-end models. Analysts predict India’s share of iPhone production will double in 2025 but still fall short of covering both U.S. and domestic demand. Full capacity may not be reached until 2026 or 2027.
Despite diversification efforts, China remains critical to Apple’s supply chain, especially for high-end production and components. Apple’s balancing act continues as it navigates geopolitical risks, rising costs, and a competitive market led by rival Samsung.
Bd-pratidin English/FNC
