Apple weighs iPhone price hike, steers clear of tariff blame

Apple is considering increasing the prices of its next line of iPhones but is carefully avoiding any mention of US tariffs on Chinese imports as a reason, according to a report by the Wall Street Journal.

The report, citing people familiar with the matter, said Apple is exploring price adjustments ahead of its fall product launch.

The company has been under mounting cost pressure due to tariffs tied to the US-China trade conflict, which has disrupted supply chains and pushed the company to expand production in India.

Despite the tariff burden, Apple is steering clear of tying any potential price rise to those duties.

On Monday, US and Chinese officials agreed to temporarily reduce some of the tariffs, lifting investor sentiment and pushing Apple shares up seven percent in premarket trading.

However, many Chinese imports, including Apple’s devices, are still facing a 30% tariff in the US.

Apple had earlier said tariffs would add around $900 million (Sh116.6 billion) in costs during the April to June quarter.

In response, the company is sourcing most of the iPhones sold in the US from its Indian factories, a shift that shows how the tech giant is adapting to rising trade costs without directly passing the blame onto the tariffs themselves.

Industry analysts have long expected Apple to raise iPhone prices, especially as the company faces mounting production expenses.

But they also warn that a higher price tag could backfire.

Competitors like Samsung are working hard to lure customers with advanced AI features, an area where Apple has moved more slowly.

Apple has not commented on the report.