Apple (AAPL.O), opens new tab is weighing price hikes for its upcoming fall iPhone lineup but is keen to avoid linking any increases to U.S. tariffs on imports from China, where most of its devices are assembled, the Wall Street Journal reported on Monday.
The technology giant’s shares were up 7% in premarket trading, tracking gains in the wider market after Washington and Beijing agreed to temporarily slash the reciprocal tariffs on Monday. But Chinese imports will still be subject to a 30% levy in the U.S.
Apple is among the most prominent firms caught in U.S.-China trade tensions, which intensified in recent months after a series of tariffs initiated by President Donald Trump.
The company did not immediately respond to a Reuters request for comment on the WSJ report, which cited people familiar with the matter.
Raising prices could help Apple cushion higher costs stemming from the tariffs that have hampered global supply chains and forced the company to shift more production to India.
An attendee holds two iPhones 16 as Apple holds an event at the Steve Jobs Theater on its campus in Cupertino, California, U.S. September 9, 2024. REUTERS/Manuel Orbegozo/File Photo Purchase Licensing Rights, opens new tab
Apple said earlier this month that tariffs were expected to add about $900 million in costs during the April-June quarter and that it would source a majority of the iPhones sold in the U.S. in the period from India.
Analysts have for months speculated about a price increase from Apple, but warned that such a move could cost it market share, especially as rivals such as Samsung try to attract consumers with AI features that Apple has been slow to roll out.
The cheapest iPhone 16 model was launched in the U.S. with a sticker price of $799, but could cost as much as $1,142 due to tariffs, per projections last month from Rosenblatt Securities, which say the cost could rise by 43%.
The WSJ report said Apple was planning on coupling the price hikes with new features and design changes including an ultrathin design, which could help justify the increases.
Amazon.com was in the crosshairs of the White House last month after its low-cost Haul unit weighed listing import charges due to U.S. tariffs, prompting the Trump administration to accuse the company of engaging in a hostile political act.
By Reuters
