Apple is weighing a price increase for its upcoming iPhone 17 model, which is expected this fall. This decision is influenced by the ongoing trade discussions between the United States and China.
The price hike will coincide with new features, including advanced artificial intelligence tools dubbed “Apple Intelligence,” along with some design modifications, such as thinner and possibly foldable models.
Led by CEO Tim Cook, Apple is striving to steer clear of speculation that the price rise stems from U.S. tariffs on Chinese imports. This information comes from sources familiar with the situation, as reported by The Wall Street Journal.
President Trump mentioned on Monday that both the U.S. and China had agreed to lower tariffs significantly, with American tariffs on Chinese goods decreasing from 145% to 30%, while Chinese tariffs on U.S. products fell from 125% to 10%.
Following this trade announcement, Apple’s shares saw a 5% increase in early trading on Monday, reflecting some positive sentiment.
During a conversation with reporters, Trump noted he had spoken with Cook but didn’t delve into specifics about potential iPhone pricing. Instead, he encouraged Cook and Apple to make further investments in the U.S., suggesting a commitment exceeding $500 billion over the coming years.
“He’s going to build a lot of plants in the U.S. for Apple,” Trump stated.
Details regarding the magnitude of the potential price increase haven’t been clarified yet. Currently, the lowest-priced iPhone 16 models are available on Apple’s site for $799.
Apple has yet to respond to requests for comments.
While Apple primarily manufactures the iPhone and its other devices in China, the company is increasingly contemplating relocating production to India, largely due to the unpredictable trade dynamics between Beijing and Washington.
Recently, it was reported that India aims to handle most iPhone production by 2026. Apple has also been working to import more iPhones from India in advance of potential tariff hikes.
However, sources indicate that China will likely continue producing premium models like the iPhone Pro and Pro Max, as India’s capacity for mass production is still developing.
Before Trump announced the latest trade agreement, Cook informed analysts last month that ongoing tariff battles had resulted in an additional $900 million burden for Apple in the quarter.
