Apple to Increase iPhone Prices Amid U.S.-China Tariff Tensions, Plans New Features to Soften Blow

Apple Inc. plans to increase the prices of its next iPhone range in response to the climbing of trade tensions and American China prices imposed by President Donald Trump, according to a report by the Wall Street Journal.

The technology giant, caught in the cross fires of global commercial disputes, sails in a complex landscape of increasing costs, changes in supply chain and competitive pressures, analysts warning that price increases could compromise its market share.

The United States has maintained a price of 30% on Chinese imports, despite a recent agreement to reduce certain prices between the United States and China. For Apple, which assembles most of its iPhones in China, these prices should add significant costs. The company said at the beginning of the month that prices would increase the expenses of approximately $ 900 million during the April-June 2025 quarter.

To alleviate these costs, Apple accelerates its transition to manufacturing in India. The company has announced that it would obtain a majority of the majority of iPhones sold in the United States from India during the period in April-June, according to Bloomberg. This strategic pivot, however, introduces new logistical challenges, including higher labor and shipping costs, as evidenced by apple cargo flights to transport more than 600 tonnes of iPhones made by India to the United States

Impact of potential price increases on consumers

According to the report of the Wall Street Journal, Apple plans to couple potential price increases with new features and design modifications, such as an ultra -min design, to justify higher costs.

The projections of analysts highlight the extent of potential price increases. Rosenblatt Securities estimated last month that the iPhone 16 of the base, currently at a price of $ 799, could reach $ 1,142 due to prices, an increase of 43%. Likewise, UBS analysts predicted that the iPhone 16 Pro Max, from $ 1,199, could see an increase of $ 350, which brings its price to around $ 1,549, an increase of almost 30%, according to CNBC.

Consumer reactions have already started to surface, with panic purchase reports in Apple stores because buyers provide price increases. CNN reported on Friday an increase in pedestrian traffic in Apple stores, driven by fellow prices.

However, analysts warn that sustained price increases could erode Apple’s market share, especially since competitors like Samsung capitalize on the advanced AI features than Apple has been slower to adopt.

The wider trade environment remains volatile, the prices creating what some analysts call a “category 5 price storm” for consumer electronics. Apple’s prudent approach in terms of pricing reflects an effort to balance costs with the maintenance of consumers’ good will. The company aims to avoid directly attributing increases to prices by linking price increases to new features, a strategy that could help preserve its brand image.

However, Apple’s shares experienced an increase of 7% in the negotiation prior to marketing on Monday, following the agreement to reduce American-Chinese prices, signaling market optimism on potential relief. However, the persistent price of 30% on Chinese imports continues to place a significant obstacle.

A problem of technology industry

Apple is not the only one to struggle with challenges linked to prices. Amazon was examined last month when its low -cost transport unit planned to list the import costs due to the American prices, which prompted the Trump administration of accusing the company of a “hostile political act”.

Apple can face the same reply from the White House. Trump said on Sunday that he spoke with Apple CEO Tim Cook, without giving details.

However, like many other companies taken in the pricing conflict, Apple faces a delicate balance. The company must choose between increasing prices to compensate for pricing costs, which may alienate consumers sensitive to prices or maintain its original prices with pressed recipient margins. The transition to Indian manufacturing, while a long -term solution, introduces immediate challenges that may not fully protect the apple from pricing impacts.