Apple is considering raising iPhone prices

Tariffs or no tariffs, Apple is considering raising prices ahead of the next iPhone 17 line-up, scheduled for autumn. A choice that, according to the Wall Street Journal, would be aimed at offsetting the increase in production costs. A cost increase that has become apparent even without the reciprocal duties between the United States and China (which can certainly exacerbate this problem).

Despite the recent trade agreement between Washington and Beijing, which essentially suspends duties between the two countries, a 20 per cent tax on smartphones remains in place, putting pressure on Apple's profit margins. And in order to maintain profitability, the Cupertino giant could choose to increase prices, but also compensate for this by introducing new features that could entice the market. Hence the rumours about a slimmer model, but also those about a foldable iPhone.

The company's CEO, Tim Cook, meanwhile, anticipated some production shifts in India, and Apple stockpiled before the tariff announcement. Although India currently produces 13-14% of global iPhone shipments, it is not yet ready for large-scale production of high-end models such as the Pro and Pro Max, on the level of China. Apple is also exploring production in the US, which could take years to implement.

Analysts warn that moving a significant part of production out of China, especially for premium models, remains a huge challenge.

It should be noted that Apple seems to be trying to keep this pricing move away from speculation about duties, shielding itself from media hype similar to that which rained down on Amazon after the idea of disclosing duty costs to consumers. However, the Cupertino company expects additional costs of USD 900 million this quarter due to the duties. And that remains a fact.