Apple is considering raising prices for its upcoming iPhone 17 models set to release this fall, according to people familiar with the matter cited by The Wall Street Journal.
The company reportedly aims to pair the potential price hikes with new features and design changes to justify the increased cost to consumers, rather than attributing them to U.S. tariffs on goods from China.
The U.S. and China recently agreed to suspend most tariffs imposed during their trade dispute, but a 20% tariff implemented by President Trump on Chinese goods remains in place and covers smartphones.
The WSJ report notes that Apple is particularly concerned about avoiding any appearance that price increases are directly related to tariffs. From the report:
The people familiar with the supply chain said Apple would have trouble making up for China tariff costs solely by seeking further savings from its suppliers, meaning a hit to its profit margin was likely unless it could raise prices.
At the same time, company executives are wary of blaming increases on tariffs. When a news report in April said Amazon might show the impact of tariffs to its shoppers, the White House called it a hostile act and Amazon quickly said the idea "was never approved and is not going to happen."
These circumstances have led Apple to look at what supply-chain insiders described as the least-bad choice: raising prices on the new iPhones to preserve profit and finding reasons other than tariffs to explain the move. It couldn't be determined what new features Apple may offer to help justify price increases.
Amid growing pressure over U.S.-China trade tensions, Apple has built up inventory and shifted manufacturing for the U.S. market to India. Apple CEO Tim Cook stated earlier this month that a majority of iPhones shipped to the U.S. in the April-June quarter would come from India.
However, Chinese factories will continue to handle most production for Apple's high-end Pro and Pro Max models, as India's infrastructure and technical capabilities aren't yet sufficient to support mass production at China's scale.
The upcoming iPhone lineup, expected to be called iPhone 17, is expected to include an all-new ultra-thin iPhone 17 Air, which replaces the Plus model in Apple's lineup. Current iPhone models range from the base iPhone 16 starting at $799 to the iPhone 16 Pro Max at $1,199.
