Tech giant Apple is reportedly weighing a plan to raise prices on new iPhones this fall with new features that can be cited as driving the higher prices, rather than attributing steeper prices to tariff costs.
The Wall Street Journal reported Monday, citing people familiar with the matter, that Apple, which assembles most of its devices in China, wants to avoid attributing higher prices to tariffs, so it’s considering ways to update the devices that can be used in justifying the price hikes.
Apple’s new iPhones are due to be released this fall and are expected to have design and format changes, such as an ultrathin option, the Journal reported.
The report comes after the Trump administration blasted a report that Amazon was considering showing the impact of tariffs on prices paid by consumers as being a “hostile political act.” Amazon said in response to the report that the plan from the Amazon Haul team was “never approved and is not going to happen.”
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Apple CEO Tim Cook moved to mitigate the impact of tariffs on the company’s supply chain by relocating production of iPhones destined for the American market from China to India, where they will be subject to lower tariffs when imported to the U.S.
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Cook indicated that iPhones made in India are expected to account for the majority of the devices sent to the U.S. over the course of the second quarter.
He also noted that Apple expected current tariff policies to lead to $900 million in additional costs in this quarter, with higher costs expected to continue into the future if tariffs aren’t rolled back.
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However, the Journal reported that people familiar with Apple’s supply chain have suggested that the company’s production lines for its most profitable Pro and Pro Max models will continue to be made in China because the facilities in India aren’t yet able to support mass production at the same scale as those in China.
FOX Business reached out to Apple for comment.
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The Trump administration previously created an exemption for most tech products from the president’s “reciprocal” tariff policies, which covered the majority of Apple products and excluded them from the levies on Chinese imports that rose as high as 145% before the White House’s recent pause on the tariffs.
Despite that move, Apple products were still subject to the 20% tariff the Trump administration imposed to punish China over its role in fentanyl smuggling.
Under the tariff pause announced Monday, the U.S. will lower its tariffs on Chinese goods from 145% to 30% for 90 days, while China will cut its levies from 125% to 10%.
Original article source: Apple considering iPhone price hikes this fall: report
