Apple looking at raising iPhone prices
Apple is considering raising prices for its next iPhone lineup, with increases likely tied top new features and design changes, rather than ongoing US-China trade tensions.
The current lineup ranges from $799 to $1,199. Yet analysts believe the newest model, Pro Max, could hit $1,900 if its pricing reflects upgrades and tariff costs.
The Wall Street Journal reported on Monday that despite facing rising costs due to tariffs on Chinese imports, the tech giant is determined to separate retail increases to the current geopolitical landscape.
Apple executives have been cautious about public messaging on tariffs, particularly as high-end product models continue to be assembled in China, where the majority of the firm’s supply chain remains.
Instead, the company is positioning any potential cost increases as a reflection of enhanced hardware and capabilities, with its new models featuring a variety of design changes.
Behind the scenes, the big tech firm is accelerating efforts to shift production to India to mitigate its reliance on China.
Apple is reportedly aiming to manufacture the majority of its products for its US market in India by the end of the year.
But for now, technical limitations mean that China remains the primary hub for its most complex models.
Apple to cut costs to absorb tariffs
The WSJ wrote that Apple would struggle to fully offset tariff costs through supplier savings alone, raising the prospect of squeezed margins unless prices rise.
While Apple has previously absorbed some cost increases through efficiencies, analysts say this year’s tariffs could force more of the burden onto customers.
Jefferies has estimated that Apple sold between 36m and 39m pro models in the US last year, its phones that carry the highest margins, but are also most affected by tariff-related costs.
The US government’s tariffs still include a 20 per cent levy on smartphones made in China despite a broader suspension of some trade penalties.
With some Chinese tariffs remaining in place, and ongoing geopolitical tensions, Apple’s long term strategy includes deepening investments in Indian production, although scaling high-end manufacturing remains challenging.
TechInsight analyst Abhilash Kumar said that by 2026, or early 2027, India may be capable of producing enough iPhones for both domestic and US markets – but China will remain a key source for components.
Apple has not confirmed specific pricing or product changes ahead of its anticipated iPhone release this autumn.