Apple Said to be Considering Hiking iPhone Prices

Apple is among the most prominent firms caught in US-China trade tensions.

By Reuters | Updated: 12 May 2025 20:06 IST

Apple Said to be Considering Hiking iPhone Prices

Photo Credit: Reuters

The price of the cheapest iPhone 16 model could go from $799 to $1,142 due to tariffs

Highlights

Apple plans to source a majority of the iPhones from India
Apple may lose market share to rivals that are loading up phones with AI
Apple is planning on coupling the price hikes with new features

Apple is weighing price hikes for its upcoming fall iPhone lineup but is keen to avoid linking any increases to US 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 seven percent 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 percent levy in the US.

Apple is among the most prominent firms caught in US-China trade tensions, which intensified in recent months after a series of tariffs initiated by President Donald Trump.

Apple Renews Fears About Tariffs, China With Wobbly Report

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.

Apple said earlier this month that tariffs were expected to add about $900 million (roughly Rs. 7,638 crore) in costs during the April-June quarter and that it would source a majority of the iPhones sold in the US in the period from India.

Apple to Source Billions of US-Made Chips in Supply Chain Shift

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 US with a sticker price of $799, but could cost as much as $1,142 (roughly Rs. 96,918) due to tariffs, per projections last month from Rosenblatt Securities, which say the cost could rise by 43 percent.

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 US tariffs, prompting the Trump administration to accuse the company of engaging in a hostile political act.

(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)

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