Apple Considers iPhone Price Hike Amid Tariff Concerns

Apple is reportedly planning to increase the prices of its upcoming iPhone lineup, slated for release this autumn. According to The Wall Street Journal, the company is attempting to distance these potential price hikes from the U.S. tariffs on imports from China.

Instead of attributing the price increases to tariffs, Apple is considering linking them to other factors, such as new features and design enhancements. Anonymous supply chain sources cited by The Wall Street Journal suggest this strategy.

Increased tariffs are projected to cost Apple $900 million in the third quarter. While Apple hasn’t directly confirmed the impact of the U.S.-China trade war on product pricing, the company is exploring alternative strategies to mitigate tariff effects. This includes increasing iPhone imports from India to reduce reliance on China.

In a recent development, the U.S. and China have agreed to a 90-day pause on reciprocal tariffs to facilitate further negotiations. Additionally, the U.S. government has announced tariff exemptions for the tech industry, specifically for smartphones, laptops, hard drives, and semiconductor manufacturing equipment. However, a previous 20% tariff on Chinese goods remains in effect.

Looking ahead, Apple is rumored to be debuting an ultra-thin iPhone this year. Multiple reports suggest this new design direction, and outlets are speculating the product name will be “iPhone Air”.

Beyond this year, Apple has even more ambitious plans. By 2027, the company may eliminate the notch entirely, according to Bloomberg’s Mark Gurman. Bloomberg reports that Apple intends to release a “mostly glass, curved iPhone” for the iPhone’s 20th anniversary. This follows Apple’s last major redesign with the iPhone X in 2017, the smartphone’s 10th anniversary.