Apple is reportedly mulling price increases for its latest iPhone 17 models this fall – a rollout complicated by ongoing trade negotiations between the US and China.
The price hikes would be implemented alongside new iPhone features, such as artificial intelligence tools referred to as “Apple Intelligence,” and design tweaks, including thinner and foldable models.
The company, led by CEO Tim Cook, wants to avoid any chatter that the hikes are due to US tariffs on Chinese-made goods, the Wall Street Journal reported, citing people familiar with the matter.
President Trump announced a deal Monday in which the US and China agreed to significantly lower reciprocal tariff rates. US tariffs on Chinese goods dropped to 30% from 145%, while Chinese tariffs on US goods dropped to 10% from 125%.
Apple shares rose 5% in early trading Monday on optimism related to the trade announcement.
Trump told reporters he had spoken to Cook earlier on Monday – but he didn’t address the report on potential iPhone price hikes. Instead, the president suggested that Cook and Apple could invest even more than the $500 billion it has already committed toward the US economy in the next few years.
“He’s going to be building a lot of plants in the US for Apple,” Trump said.
The extent of the potential price hikes was not immediately known. At present, the cheapest available iPhone 16 model is listed for $799 on Apple’s website.
Apple did not immediately return a request for comment.
Apple manufactures the vast majority of its iPhones and other hardware in China. However, the company has increasingly looked to shift production to India due to volatile trade relations between Beijing and Washington.
Last month, reports surfaced that Apple was looking to have India produce most of its iPhones by 2026. Apple also scrambled to import more iPhones from India in recent weeks to get ahead of higher tariffs.
However, China is expected to continue to manufacture higher-end models like the iPhone Pro and Pro Max because India lacks sufficient capacity to mass produce them, according to the Journal.
Before Trump announced the latest trade deal, Cook told analysts last month that the tariff war resulted in $900 million in additional costs for Apple this quarter.
