The price hike will affect the upcoming fall iPhone lineup, but the American company does not want to link the price increase to Trump's tariffs on imports from China, where most Apple devices are assembled.
The price hike will affect the upcoming fall iPhone lineup, but the American company does not want to link the price increase to Trump's tariffs on imports from China, where most Apple devices are assembled.
The Wall Street Journal reports that the price hike could help offset Apple's higher costs caused by tariffs , which are disrupting global supply chains and forcing the company to shift iPhone production to India.
The tech giant's shares rose 7% in premarket trading after Washington and Beijing agreed to a 90-day truce in their trade war. Under the deal, Beijing is reducing tariffs on US goods from 125% to 10%. In response, Washington is reducing tariffs on Chinese goods from 145% to 30%.
Earlier this month, Apple said the tariffs would cost about $900 million in additional costs in April-June, and that most iPhones sold in the US during that period would be made in India.
Analysts have been predicting price increases from Apple for months, but have warned that such a move could cost it market share, especially as competitors like Samsung try to attract consumers with artificial intelligence features that Apple has been slow to introduce.
The cheapest iPhone 16 model launched in the US at $799, but could cost as much as $1,142 due to tariffs. The WSJ report says Apple plans to combine the price hike with new features and design changes, including an ultra-thin design, which could justify the price hike.
