Apple Plans iPhone Price Hikes Linked to Features Amid Tariff Challenges

Apple is preparing to increase the prices of its iPhone lineup launching this autumn. However, the company aims to frame these price hikes as a result of new features and design improvements rather than directly linking them to the ongoing tariffs imposed by the U.S. on imports from China.

According to anonymous supply chain sources cited by The Wall Street Journal, Apple is considering attributing the price increases to innovations and enhancements in the new iPhone models. This approach helps the company avoid direct association with the $900 million tariff cost expected in the third quarter due to the U.S.-China trade tensions.

To mitigate the impact of tariffs, Apple has increased the proportion of iPhones manufactured in India instead of China. This strategic move helps reduce tariff expenses and diversify the supply chain amid the ongoing trade war. Notably, the U.S. and China agreed to a 90-day pause on reciprocal tariffs to allow for further negotiations, and the U.S. government has granted tariff exemptions for key tech products including smartphones and laptops.

Looking ahead, Apple is reportedly planning to release an ultra-thin iPhone this year. More ambitious plans are in place for 2027, when the company may unveil a "mostly glass, curved iPhone" without any cutouts, marking a significant redesign for the device’s 20th anniversary. This would follow the major redesign introduced with the iPhone X in 2017, the smartphone’s 10th anniversary.

Apple’s strategy highlights the complex interplay between geopolitical factors and product innovation in the tech industry. By shifting production locations and emphasizing design advancements, Apple aims to maintain competitive pricing while navigating tariff challenges. These developments underscore the importance of adaptive supply chain management and forward-looking product strategies in a volatile global market.