WSJ: Apple Seeks to Avoid Blame on Tariffs for Price Hike
Apple is reportedly considering raising the prices of its new iPhone series set to be released this year.
On May 12 (local time), The Wall Street Journal (WSJ), citing sources, reported that Apple is considering a price increase for the iPhone 17 series, which is expected to launch in September, as the company is planning to add new features and make design changes.
This would mark the first price increase for the iPhone in U.S. dollars in three years since 2022. Currently, the base iPhone model starts at $799 (128GB), while the high-end Pro Max model starts at $1,199 (256GB).
The extent of the price increase and the additional features have not been disclosed. However, there are expectations that the design of the new operating system to be installed on the latest iPhones will undergo an overall change. It is also anticipated that the new lineup will include a thinner model to replace the iPhone 16 Plus, which is currently sold for $899 in the United States.
One source stated, "Apple is trying to avoid a situation where it appears that prices have increased due to tariffs." Last month, Amazon, the world's largest e-commerce company, considered displaying tariff-related price increases on some products, but scrapped the plan after the White House criticized it as a "hostile and political act."
WSJ pointed out, "Apple is looking for reasons other than tariffs to justify raising the price of the new iPhone in order to maintain its profit margin," and added, "It is still unclear what new features will be offered to justify the price increase."
To minimize the impact of tariffs, Apple is diversifying iPhone production from China to other regions. In this regard, industry analysts expect that India's share of global iPhone shipments will double this year compared to last year. However, Abhilash Kumar, an analyst at tech research firm TechInsights, noted, "That alone will not be enough to meet demand in the United States and India," and predicted, "It will likely be late 2026 or early 2027 before factories in India can meet iPhone demand in both the U.S. and India, but even then, China will remain crucial for sourcing components."
iPhones imported from China were designated as exempt from reciprocal tariffs by the Trump administration on April 11, but the so-called fentanyl tariff of 20% still applies. CEO Tim Cook stated during the quarterly earnings announcement on May 1 that the current tariffs will result in an additional $900 million in costs this quarter, and that even greater costs will follow in subsequent quarters.
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