Key Takeaways
- Apple is reportedly considering raising prices on its next generation of iPhones expected to be released this fall—but without pinning higher costs on tariffs.
- While most Apple products are exempt from President Donald Trump’s “reciprocal” tariffs on Chinese goods, iPhones and other devices are still affected by the 20% import tax the White House put in place earlier in the year to combat fentanyl trafficking.
- Shares of Apple popped more than 5% in recent trading Monday amid broader market gains.
Apple (AAPL) is reportedly considering raising prices on its next generation of iPhones expected to be released this fall—but without pinning higher costs on tariffs.
The company wants to avoid the perception that higher prices for its iPhone 16 successor are attributed to a trade war with China, where many Apple devices are produced, The Wall Street Journal reported Monday. Apple did not immediately respond to a request for comment.
The report comes as the U.S. and China agreed to dramatically roll back tariffs on each other’s imports for 90 days. The U.S. levy on Chinese imports will be reduced to 30% from 145% by Wednesday, while Beijing’s tariffs on U.S. goods will drop to 10% from 125%, according to U.S. Treasury Secretary Scott Bessent.
Most Apple products are exempt from President Donald Trump’s “reciprocal” tariffs on Chinese goods. However, iPhones and other devices are still affected by the 20% import tax the White House put in place earlier in the year to combat fentanyl trafficking. Shares of Apple popped more than 5% in recent trading Monday amid broader market gains.
Earlier this month, CEO Tim Cook warned that tariffs would cost Apple about $900 million in the current quarter that runs through June. To mitigate the effects, Cook said a majority of iPhones sold in the U.S. this quarter will come from India instead of China, with iPad, Mac, Apple Watch, and other products coming mostly from Vietnam.
However, the higher-end (and more profitable) Pro and Pro Max iPhone models will continue to primarily ship from China, WSJ reported. Apple’s factories in India are not yet capable of mass producing those models at the same scale as their Chinese counterparts can, the report said.