Apple considers raising iPhone 17 prices without mentioning Trump's tariffs against China
Apple is preparing to raise prices for the autumn iPhone 17 line, but does not officially acknowledge that this is due to duties on Chinese components. Instead, the company plans to introduce new features and design, including an ultra-thin model, to justify the price increase.
What is known
According to The Wall Street Journal, Apple is considering raising prices for new iPhones to offset rising production costs caused by US tariffs on Chinese goods. Although many tariffs have been suspended, the 20% duty on smartphones remains in place, which is putting pressure on the company's profitability. Apple estimates additional costs of $900 million this quarter.
The company has already shifted some production to India, which currently accounts for 13-14% of global iPhone shipments. However, high-end models such as the Pro and Pro Max continue to be manufactured primarily in China due to the complexity of production and infrastructure constraints in India.
Analysts warn that shifting a significant part of production from China is a difficult task. Apple is keen to avoid political pressure by not blaming tariffs for price increases, just as Amazon faced criticism when it considered reflecting the impact of tariffs on consumer prices.
The new iPhone 17 is expected to be unveiled in the autumn, with new features and design that should justify the potential price increase.
What kind of duties are we talking about?
These are additional duties imposed by the US on Chinese goods as part of the trade war between Washington and Beijing. In particular, the 20% duty on imports of smartphones made in China is still in effect and directly affects companies like Apple, which assemble a significant part of their products there. Some of the duties have been temporarily suspended, but smartphones are still in the "red zone". This is forcing Apple to revise its pricing, partially transferring production to India, but at the same time taking into account the increase in costs in the retail price of new iPhones.
Source: The Wall Street Journal
