Apple Inc. is reportedly exploring the possibility of raising the price of its next-generation iPhones, which are set to launch later this year. However, according to a new Wall Street Journal report, the company aims to keep any price adjustments separate from ongoing tariff disputes between the U.S. and China, despite the fact that the majority of Apple’s products are still manufactured in Chinese factories.
Apple’s stock saw a 7% increase in premarket trading on Monday, buoyed by broader market gains following a temporary easing of trade tensions between Washington and Beijing. While both governments agreed to reduce some tariffs, a 30% levy on Chinese-made goods continues to apply in the U.S., keeping pressure on companies that rely heavily on imports from the region.
Apple Navigates Trade Tensions and Supply Chain Costs
Among U.S. corporations, Apple remains one of the most visibly affected by the U.S.-China tariff standoff. The trade dispute—escalated through successive rounds of tariffs under former President Donald Trump—has disrupted international supply chains, driven up costs, and forced Apple to diversify its production operations.
Although the company declined to respond to media requests about the pricing speculation, sources cited in the WSJ article indicate Apple is working on incorporating major design changes into its new iPhone models—such as a slimmer, more refined form factor—to help validate the price hike in consumers’ eyes.
Tariffs Add Nearly $1 Billion in Quarterly Costs
In an earlier earnings call, Apple projected that tariffs would tack on around $900 million in extra costs during the April–June quarter. To mitigate these expenses and lessen reliance on Chinese factories, Apple is shifting a larger portion of its iPhone production to India. The company confirmed that most of the iPhones destined for the U.S. market this quarter will come from Indian plants instead of Chinese ones.
This move aligns with Apple’s long-term effort to diversify its manufacturing footprint in response to increasing geopolitical risks and economic uncertainty tied to China.
Analysts Warn of Consumer Pushback
Financial analysts have speculated for some time that Apple might eventually raise the price of its iPhones to counteract rising costs. However, they caution that doing so could hurt the company’s competitiveness—especially at a time when competitors like Samsung are luring buyers with cutting-edge AI tools and aggressively priced models.
Although Apple maintains a strong brand presence and loyal customer base, market watchers warn that significant price increases without equally impressive feature upgrades could lead to lost sales. According to Rosenblatt Securities, tariffs alone could push the cost of the entry-level iPhone 16 from $799 to as high as $1,142—a 43% surge that may not sit well with budget-conscious buyers.
Strategy Focuses on Product Innovation, Not Trade Politics
While other companies have responded to the tariffs with public complaints or visible pricing disclosures, Apple appears to be following a different path. The WSJ article notes that the tech giant intends to roll out its higher prices alongside meaningful product enhancements rather than tying the increases to external political factors.
By focusing on design improvements and additional features rather than entering the political spotlight, Apple hopes to preserve its image and maintain customer trust. In contrast, Amazon recently faced criticism from the White House after its low-cost division, Haul, considered including tariff-related fees on product listings. The move sparked backlash from U.S. officials, who accused the retailer of politicizing the issue.
Apple’s quieter, innovation-focused response reflects a calculated strategy to avoid similar controversy, even as it navigates the complex global pressures affecting its supply chain and profit margins.
