Apple is pondering a price increase for its upcoming iPhone series set to launch in the fall. The tech giant is trying to sidestep the pitfalls of rising costs caused by U.S. tariffs on imports. Instead of directly linking price hikes to tariffs, Apple plans to tie them to new features and design changes.
This decision seems to stem from lessons learned by Apple management, particularly observing Amazon’s experience with government scrutiny over similar issues. Recently, reports suggested Amazon was criticized for potentially passing tariff costs onto consumers, prompting a response from the White House, which deemed such actions unacceptable.
Apple is exploring the idea of associating price increases with innovations rather than tariff challenges. Notably, the company has shifted a significant portion of its iPhone production to India, which helps mitigate tariff impacts.
CEO Tim Cook has indicated that current customs policies may add around $900 million in costs this quarter, which has encouraged the company to push more manufacturing operations to India.
What do you know about the iPhone 17?
This year’s anticipated iPhone model promises to be ultra-thin, with particular leaks suggesting a unique camera design that integrates seamlessly into the back. However, it seems the 12-megapixel camera seen in the iPhone 16 series might be swapped out for a more advanced 48-megapixel telephoto lens.
Additionally, the iPhone 17 Pro and Pro Max models are expected to feature Apple’s upcoming A19 Pro chipset, likely produced using a cutting-edge 3nm process.
US-China trade
In context, recent developments included a temporary suspension of tariffs between the U.S. and China for 90 days after negotiations on May 12. This agreement involves reducing the hefty U.S. tariffs from 145% on various Chinese imports down to 30%, while Chinese tariffs on U.S. goods would fall from 125% to 10%.
The White House has labeled this agreement a “trade deal,” but specifics about what both sides will ultimately agree upon remain murky.
