Apple weighs iPhone price hikes – but won’t blame tariffs
Apple is reportedly considering raising the prices of its upcoming iPhone lineup, with any increases likely to stem from new features and design changes rather than tensions between the US and China.
The current range of iPhones is priced between $799 and $1,199, but analysts suggest that the new high-end model, the Pro Max, could reach as much as $1,900 if pricing reflects both hardware improvements and any additional production costs.
According to the Wall Street Journal, the tech company is determined not to link any retail price hikes directly to tariffs on Chinese imports, despite continuing to face increased costs on products assembled in China – the centre of much of Apple’s supply chain. Executives have remained cautious with their public messaging on tariffs, aware of the political sensitivities and ongoing logistical dependencies.
Instead, the company is framing any potential price rises as a result of upgraded hardware and software capabilities, as the newest devices are expected to incorporate a host of new technologies and design alterations.
Behind the scenes, Apple is expanding its manufacturing footprint in India, part of a strategy to reduce its reliance on China. The firm reportedly plans to produce the majority of its iPhones for the US market in India by the end of this year. However, due to ongoing technical challenges, China remains the primary manufacturing base for Apple’s most sophisticated models.
While Apple has absorbed some increased costs in previous years by improving production efficiency and securing supplier savings, this year’s tariffs could make it more difficult to avoid passing some of the financial burden onto customers. Analysts from Jefferies estimate that between 36 million and 39 million ‘Pro’ models were sold in the US last year – Apple’s most profitable devices, but also those most heavily affected by tariff-related inflation.
Despite some relief measures on trade penalties, US tariffs still include a 20 per cent duty on smartphones assembled in China. Continued geopolitical uncertainty has further encouraged Apple to invest in Indian production facilities, though ramping up advanced manufacturing capability in the country remains a work in progress.
TechInsight analyst Abhilash Kumar noted that by 2026 or early 2027, India may be capable of producing enough iPhones to satisfy both domestic demand and that of the US market. Nevertheless, China is expected to remain a critical supplier of key components.
Apple has yet to confirm any pricing or product specifications ahead of the anticipated iPhone launch this autumn.
