iPhone price hike: Apple is reportedly considering hiking the prices of its forthcoming iPhone series. While the tech giant does not wish to openly link these price hikes to the ongoing US-China tariff war, most of its products are produced in China, which is at the heart of the trade tensions. The Wall Street Journal discovered that Apple can employ this strategy to compensate for rising costs, though the company has not officially discussed this.

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Tariffs Still Affect Apple’s Supply Chain

Despite recent agreement from Washington and Beijing to reduce tariffs temporarily, Chinese imports into the US continue to be hit with a whopping 30 percent tariff. One of the best-known companies adversely affected by these policies, Apple, is still under pressure. These tariffs, which began during the Trump administration, created ripple effects through global supply chains, compounding Apple’s ability to stick with its customary pricing.

Shifting Production to India to Lower Costs

In an attempt to counter the impact of tariffs, Apple has started to shift most of its iPhone production to India. According to the company, most of the iPhones that were sold in the US from April to June will be from India. Apple previously estimated that tariffs would cost the company around $900 million in one quarter, emphasizing the value of long-term diversification of supply chains.

Competitors Can Catch Up with AI Integration

Experts have warned that if Apple raises prices without offering must-have new features, it risks losing market share. Competitors such as Samsung are already attracting buyers with AI-driven technologies, where Apple has lagged in playing catch-up. A significant price hike would make iPhones less attractive unless coupled with noticeable hardware and software improvements.

iPhone 16 Could See 43% Price Hike

The budget iPhone 16, which now starts at $799, could see its price hike as high as $1,142 under the compounding impact of tariffs. That estimated 43 percent increase comes from Rosenblatt Securities’ estimates. If that holds, such a spike would be one of the biggest Apple has seen and could shift consumer attention towards cheaper alternatives.

Apple to Sanction Premium Price with New Features

To soften the added expense, Apple reportedly is cooking up massive design and feature enhancements. These might include a superthin body and maybe even some innovative features that weren’t included on previous models. These features ought to allow Apple to present the next iPhones as premium, next-generation offerings worthy of higher price points.