Apple Reportedly Mulling Price Hike For Fall Iphone Releases

Apple is reportedly considering price increases for its next iPhone models.

However, the tech giant is committed to avoiding the appearance of blaming that price hike on U.S. tariffs on products from China, where most iPhones are made, The Wall Street Journal (WSJ) reported Monday (May 12), citing sources familiar with the matter.

The news came just as the U.S. and China announced a deal to suspend most of the tariffs they had placed on each other. Still, a 20% tariff that President Donald Trump imposed earlier this year on Chinese goods is still in place and applies to smartphones.

As the report notes, the trade conflict between the U.S. and China has placed pressure on Apple’s supply chain, leading the company to look to India to handle smartphone manufacturing.

However, sources told the WSJ that the most profitable, high-end iPhone models will continue to primarily be made in China, as India’s infrastructure and technical capabilities can’t yet support mass production at the scale China can offer.

Of the 65 million or so iPhones sold in the U.S. last year, 36 to 39 million were the higher-end Pro or Pro Max models, the WSJ added, citing estimates from the investment bank Jefferies. PYMNTS has contacted Apple for comment but has not yet gotten a reply.

Sources told the WSJ Apple would struggle offsetting tariff costs just by seeking savings from suppliers. That means it would likely see a hit to its profit margins unless it raised prices. But company officials are reluctant to blame tariffs for rising prices.

As the WSJ notes, when Amazon appeared to be doing the same thing last month by listing the tariff-related cost of goods on its website, the White House lashed out. The tech giant quickly said this plan “was never approved and is not going to happen.”

Not all businesses are as reluctant to blame the tariffs for their troubles. Close to 20% of American small and medium-sized businesses (SMBs) are pessimistic about their chances of remaining afloat over the next five years, according to the PYMNTS Intelligence report “Brewing Storm: Why 1 in 5 Smaller Businesses Without Financing Fear They May Not Survive Tariffs.”

“For SMBs, tariffs aren’t just a line item; they’re an existential threat,” PYMNTS wrote last month. “Prices for goods and services climbed to their steepest rate in over a year this month, with tariffs fueling an especially sharp increase in prices of manufactured goods.”

SMBs account for around one-third of total imports to the U.S., that report added, but don’t have the advantages of bigger firms, like the ability to diversify suppliers or negotiate bulk contracts.

The post Apple Reportedly Mulling Price Hike for Fall iPhone Releases appeared first on PYMNTS.com.