Apple to Raise Prices for New iPhone Lineup, Report Says

Key Takeaways

1. Apple is considering raising prices for upcoming iPhone models, focusing on new features rather than tariffs as justification.
2. A new tariff agreement between the US and China reduces tariffs to 10%, but a 20% tariff on China remains in place.
3. Apple’s most profitable iPhone models, the Pro and Pro Max, will continue to be produced in China, affecting profit margins.
4. Apple is exploring production in India but lacks the necessary infrastructure for mass iPhone manufacturing.
5. Price increases may be linked to new camera technologies and larger batteries, with executives avoiding direct mentions of tariffs as the reason.

Apple is said to be thinking about raising prices for its upcoming iPhone models, expected to launch later this year. Instead of pointing to the ongoing trade conflict between the US and China as the cause, the company plans to focus on new features or design changes as justification for the increases.

Tariff Agreement

On Monday, May 12th, 2025, the US and China came to an agreement to cut their reciprocal tariffs to 10%, down from an outrageous 125%. However, a different 20% tariff on China will still be in place. These new tariffs will stay in effect for 90 days, during which both countries aim to finalize a deal.

Manufacturing Insights

According to The Wall Street Journal, Apple’s most lucrative iPhone versions, the Pro and Pro Max, will still be produced in China. Insiders from the supply chain informed the publication that Apple may face reduced profit margins unless it opts to raise prices.

Apple had been mulling over a significant overhaul of its supply chain, with a goal to produce 60 million iPhones every year in India. Yet, currently, the necessary infrastructure and technology aren’t sufficient for mass production.

Price Justifications

The sources from WSJ pointed out that new camera technologies and larger batteries might create challenges. The report also indicated that Apple executives are cautious about attributing the price increases to tariffs. Instead, they will likely frame the hike as a result of new features or design improvements in the soon-to-be-released iPhones.

Apple’s CEO Tim Cook has mentioned in the past that the new tariffs could lead to an extra $900 million in costs for the quarter. He also highlighted that major iPhone models sold outside the US would continue to be sourced from China.

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