Apple Inc. is weighing raising prices on its next iPhone lineup due this fall, but it is said to be trying not to tie the hike to U.S. tariffs on Chinese imports, according to a report in The Wall Street Journal.
The majority of Apple products are still manufactured in China, where U.S. import tariffs are still high, although there was a temporary relief in mutual tariffs negotiated between Washington and Beijing. Chinese imports continue to face a 30% U.S. tariff.
Apple earlier revealed that tariffs would add around $900 million in expenses for the April–June quarter. In response, the company said it would increase dependency on iPhone manufacturing in India to serve the U.S. market.
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While analysts have long predicted a price increase, many warn that it may jeopardize Apple’s market share, particularly as rivals such as Samsung keep gaining traction by introducing smartphones with sophisticated AI capabilities—an area in which Apple has fallen behind.
The base model of the iPhone 16, which was launched at $799, would cost as much as $1,142 if tariffs are entirely accounted for, according to projections by Rosenblatt Securities.
