Apple considers raising iPhone prices but won’t blame tariffs, WSJ reports
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Apple is planning on coupling the price hikes with new features and design changes.
PHOTO: AFP
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CUPERTINO, California – Apple is weighing price hikes for its upcoming iPhone line-up but is keen to avoid linking any increases to US tariffs on imports from China, where most of its devices are assembled, the Wall Street Journal reported on May 12.
The technology giant’s shares were up 7 per cent in pre-market trading, tracking gains in the wider market after Washington and Beijing agreed to temporarily slash
But Chinese imports will still be subject to a 30 per cent levy in the United States.
Apple is among the most prominent firms caught in US-China trade tensions, which intensified in recent months after a series of tariffs
Raising prices could help Apple cushion higher costs stemming from the tariffs that have hampered global supply chains and forced the company to shift more production to India.
Apple said earlier in May that tariffs were expected to add about US$900 million (S$1.2 billion) in costs during the April-June quarter and that it would source a majority of the iPhones sold in the US in the period from India
Analysts have for months speculated about a price increase from Apple, but warned that such a move could cost it market share, especially as rivals such as Samsung try to attract consumers with AI features that Apple has been slow to roll out.
The cheapest iPhone 16 model was launched in the US with a sticker price of US$799, but could cost as much as US$1,142 due to tariffs, per projections in April from Rosenblatt Securities, which say the cost could rise by 43 per cent.
The WSJ report said Apple was planning on coupling the price hikes with new features and design changes, including an ultrathin design, which could help justify the increases.
Amazon.com was in the crosshairs of the White House in April after its low-cost Haul unit weighed listing import charges due to US tariffs, prompting the Trump administration to accuse the company of engaging in a hostile political act. REUTERS
