iPhone Price Hike: Amid the ongoing US-China tariff war, there are reports suggesting that Apple could increase the prices of its upcoming iPhone models.
According to The Wall Street Journal, Apple is considering a price hike, but the main reasons seem to be new features and design updates rather than rising tariffs.
The company reportedly wants to avoid giving the impression that the price increase is linked to the growing tariffs on Chinese imports.
However, Apple’s high-end Pro and Pro Max models, along with many other products, are still made in China.
Manufacturing iPhones in India
Apple’s CEO, Tim Cook, has mentioned that he hopes most of the iPhones sold in the US will soon be made in India.
Reports suggest that Indian factories may eventually be able to produce Pro models, although India currently lacks the infrastructure and technical expertise needed for this.
Following this announcement, Apple’s stock saw a 7% rise in premarket trading.
Could Tariffs Lead to Higher iPhone Prices?
After the US tariff increase on China, there were reports that iPhones could become 30-40% more expensive if Apple decided to pass on the tariff costs to consumers.
Good News: Tariffs Are Being Reduced
Interestingly, the news of a possible price hike came just after the US and China agreed to reduce tariffs in an effort to ease trade tensions. The Geneva statement outlined plans to lower tariffs on each other’s goods.
The US will cut its 145% tariffs on Chinese imports to 30%, while China will reduce its 125% tariffs on US goods to 10%. Both sides will continue discussions on broader trade issues.
