Apple Might Raise Prices on iPhones, but Not Because of Tariffs

Apple’s upcoming iPhone models might cost consumers more this year. However, the tech giant supposedly isn’t blaming tariffs for the price hikes.

Purportedly citing people familiar with the matter, the Wall Street Journal reported that the increase in iPhone prices is related to new features and design updates. According to reports, the new iPhones, set to release in the fall, will be much thinner than the current iPhone 16.

However, the trade war between the U.S. and China is expected to impact Apple. The company predicted costs related to increased tariffs could reach as high as $900 million in the third quarter. Yet, the company has not mentioned whether this would push product prices up.

To limit the potential financial damage, Apple has been importing a majority of iPhones from India. In 2024, between 13% and 14% of iPhones were shipped from India. Yet, it seems that it is going to increase in the next year or two. In the meantime, the tech giant has been exploring moving some iPhone production to the U.S.

Apple’s Strategy To Avoid Blaming Tariffs

The Wall Street Journal noted that Apple’s premium iPhone models, the Pro and the Pro Max, will likely still be made in China. India, while capable of manufacturing the high-end models, doesn’t have the needed infrastructure to mass support their production.

According to investment bank Jefferies, about 65 million iPhones were sold last year in the U.S. Of those, 36 million to 39 million were either a Pro or a Pro Max.

Apple could put a squeeze on suppliers to cut costs as it tries to absorb the tariff fees. However, insiders reportedly doubt that getting better prices from suppliers will be enough without digging into profit margins, meaning the company would need to raise prices.

It’s unlikely Apple would publicize a price increase caused by tariffs. When rumors spread that Amazon was about to reveal how prices were directly affected by tariffs, the White House lashed out against the retailer. As such, Apple might choose a different path, raising prices to maintain profit but finding another reason, like new features, to blame.

Apple may get some reprieve as the U.S. and China put a hold on their respective tariffs for 90 days. President Trump has also offered some exemptions for the tech industry, which includes smartphones, hard drives, and laptops.