Apple is considering raising prices for its new iPhone lineup this fall, although it aims to keep any increases separate from the U.S. tariffs on Chinese imports, according to a report from the Wall Street Journal.
The company’s stock rose by 7% in premarket trading, aligning with broader market gains, following a temporary agreement between Washington and Beijing to reduce reciprocal tariffs. However, a significant 30% tax will still apply to Chinese imports in the U.S.
Apple, being a major player affected by U.S.-China trade disputes, has faced challenges recently due to tariffs enacted under former President Trump.
The tech giant did not respond promptly to a request for comment regarding the WSJ report, which referenced sources close to the situation.
Increasing prices might help Apple manage the higher expenses from tariffs that have disrupted global supply chains. The company has also started moving more production to India.
Earlier this month, Apple estimated that tariffs could result in an additional $900 million in costs for the April-June quarter, noting that most iPhones sold in the U.S. during this time would come from India.
While analysts have long speculated about a potential price increase, they caution that it could potentially lead to a loss of market share, especially as competitors like Samsung incorporate AI features that Apple has been slower to adopt.
The entry-level iPhone 16 was introduced in the U.S. at a starting price of $799, but projections from Rosenblatt Securities indicated that, factoring in tariffs, it could reach as high as $1,142—an increase of approximately 43%.
The WSJ also noted that Apple plans to couple any price hikes with new features and design updates, including a slimmer design, which may help justify the increase.
Last month, Amazon found itself under scrutiny from the White House due to its inexpensive Haul unit, which was weighing listing import charges attributed to U.S. tariffs, leading to accusations from the Trump administration of a politically provocative act.
