Apple Plans iPhone Price Hikes Amid Trade Pressure: Report
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Apple is preparing to raise prices on its upcoming fall iPhone lineup, a move it intends to offset with new design upgrades and features. Citing sources familiar with the company's strategy, The Wall Street Journal report reveals that Apple aims to avoid any perception that the price increases are driven by U.S. tariffs on Chinese imports; even as it remains deeply entangled in the economic tensions between the two superpowers.
The price hike, insiders told WSJ, is largely tied to design changes and a new, slimmer iPhone form factor expected to debut with the iPhone 16 series. While the base model launched in the U.S. at $799, analysts at Rosenblatt Securities have projected that tariffs could drive the cost up to INR1,142, a potential increase of 43 per cent.
Apple continues to rely heavily on China for its high-end iPhone Pro and Pro Max production, exposing the company to ongoing trade risk. While Apple CEO Tim Cook has publicly expressed a desire to move most U.S.-bound iPhone manufacturing to India, the WSJ report notes that Indian factories currently lack the technical infrastructure to fully replace Chinese production for the more advanced models.
Earlier this month, Apple disclosed that tariffs would add approximately $900 million in costs for the April to June quarter. To help offset this burden, the company announced plans to source most iPhones sold in the U.S. during that time from India.
Despite this partial pivot, the broader challenge remains. Apple is one of the most visible corporations caught in the crosshairs of U.S.-China tensions, which have intensified in recent months. The Trump administration's aggressive tariff regime has rattled global supply chains and spurred high-profile companies to reevaluate sourcing strategies.
Amazon 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.
For Apple, the decision to raise prices in the fall is a calculated gamble, one that will test customer loyalty amid rising competition during global instability.
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