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Apple is “keen to avoid any perception that the price hikes are linked to US tariffs on Chinese imports”, according to a WSJ report.
Following the news, Apple’s stock jumped about 7 per cent in premarket trading.
Apple is considering raising prices for its upcoming iPhone lineup this fall, according to a report by The Wall Street Journal citing sources familiar with the matter. It added that the price hike would be tied to new features and design updates, rather than rising tariffs.
The company is “keen to avoid any perception that the price hikes are linked to US tariffs on Chinese imports”, the report noted. Although most Apple devices are still manufactured in China — particularly the high-end Pro and Pro Max models — Apple wants to dissociate any cost increases from trade-related pressures.
While Apple CEO Tim Cook has expressed hopes that most iPhones destined for the US market will eventually be manufactured in India, the report said although Indian factories may be capable of producing Pro models, the country still lacks the necessary infrastructure and technical expertise.
Following the news, Apple’s stock jumped about 7 per cent in premarket trading.
Earlier reports had warned that iPhones could become 30 per cent to 40 per cent more expensive if Apple chose to pass the cost of higher tariffs to consumers, further fuelling concerns around pricing amid geopolitical tensions.
The report emerged shortly after the US and China jointly announced plans to lower tariffs on each other’s goods in an effort to ease trade tensions. According to a statement released in Geneva, both countries have agreed to reduce duties, giving themselves a three-month window to work toward resolving broader trade disputes.
As per the new terms, the US will cut its combined 145 per cent tariffs on Chinese imports to 30 per cent, including levies related to fentanyl. China, in turn, will reduce its 125 per cent duties on US products to 10 per cent.
“We had a very robust and productive discussion on steps forward on fentanyl,” said Treasury Secretary Scott Bessent. “We are in agreement that neither side wants to decouple.”
The statement added that the two nations will “establish a mechanism to continue discussions about economic and trade relations”. US Trade Representative Jamieson Greer also emphasised that the US is aiming for “more balanced trade with China”.
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