WSJ: Apple considering raising iPhone prices, but afraid to attribute it to the impact of tariffs
Apple is considering raising prices for its fall iPhone lineup, The Wall Street Journal reports, citing informed sources.
The American company plans to combine a possible price increase with new features and design changes. In particular, an ultra-thin iPhone is expected to replace the current iPhone 16 Plus model, which currently costs from $899.
According to the newspaper's sources, Apple is seeking to avoid publicly linking price increases to U.S. tariffs on Chinese goods, where most of the company's devices are assembled.
It is noted that companies are currently wary of blaming tariffs for rising prices for their goods and services.
In April, reports emerged that Amazon might demonstrate the impact of tariffs to its customers. The White House called it a hostile act, and Amazon quickly said the idea "was never approved and will not be implemented."
That's why Apple is trying to find reasons other than tariffs to explain this move.
Despite the fact that Apple plans to move some of its production to India, the country's infrastructure and technical capabilities are not yet sufficient to support mass production on the scale that China can currently provide, the newspaper notes.
Therefore, the bulk of production of the most profitable Pro and Pro Max models will continue to be carried out by Chinese factories.
The newspaper's sources emphasize that Apple will find it difficult to offset the costs of tariffs against China solely through further savings from suppliers, which means that if the company does not raise prices, this could lead to a reduction in profits.
The exact date for the presentation of new iPhone models has not yet been announced, but the company traditionally presents them in the fall. It is predicted that the iPhone 17 series will be released this year.
Analysts have previously warned that iPhone prices in the US could rise sharply given Apple's high reliance on imports from China, a major device manufacturing hub that is subject to Trump's highest tariff rate of 125%.
Bloomberg wrote that the American technology giant Apple, due to the US trade war with a number of countries , found itself on the verge of the most severe crisis since Covid.