Apple Eyes iPhone Price Hike Amid Tariff Pressures *

Apple is reportedly considering raising prices for its next-generation iPhone lineup this fall, though it’s aiming to distance any potential increases from U.S. tariffs on Chinese imports — a politically sensitive issue for the tech giant. The report, published by The Wall Street Journal, cites sources familiar with the matter.

The news comes as Apple’s shares jumped 7% in premarket trading Monday, following an agreement between Washington and Beijing to temporarily reduce reciprocal tariffs. Despite the reprieve, Chinese imports, including Apple’s China-assembled devices, remain subject to a hefty 30% tariff in the U.S.

Caught in the Crossfire of U.S.–China Trade Tensions

Apple has long been one of the highest-profile companies ensnared in the ongoing U.S.–China trade dispute. The situation escalated under the Trump administration, with waves of tariffs disrupting global supply chains and forcing Apple to diversify production to other regions, particularly India.

Earlier this month, Apple warned that tariffs would add approximately $900 million in costs during the April–June quarter alone. In response, the company plans to source the majority of iPhones sold in the U.S. during that period from India — a significant operational shift.

How Much Could iPhones Cost?

While analysts have speculated for months about an iPhone price increase, they’ve also cautioned that it could erode Apple’s market share. The competitive landscape has become tougher as rivals like Samsung aggressively push AI-powered devices, a category where Apple has yet to catch up.

According to Rosenblatt Securities projections last month, the cheapest iPhone 16 model — originally priced at $799 — could see its price soar to $1,142 with tariffs factored in, marking a staggering 43% hike.

The WSJ report suggests Apple might offset the sting of higher prices by introducing meaningful upgrades, including a new ultrathin design and other premium features intended to justify the cost bump.

Apple’s Growing Bet on India

A notable development in Apple’s manufacturing strategy is its growing reliance on India. The company already produces several models there, and analysts predict India could account for over 25% of all iPhone production by 2026 — a remarkable shift for a company that, until recently, relied almost exclusively on Chinese factories. This transition not only cushions Apple against future tariff shocks but also positions it to tap into the fast-growing Indian smartphone market, where premium device sales have surged in recent years.