Apple Considers Rising IPhone Prices, Avoid Linking To AS-China Tariffs

The iPhone 16 is likely to increase by 43 percent (photo; dock. apple)

JAKARTA Apple Inc. is reportedly considering raising prices on its newest iPhone line which will be launched next fall. However, this giant technology company from Cupertino is trying to avoid the link between the increase in prices and the US import rate on products from China.

Most of Apple's devices are still being assembled in China, which is the center of tension in trade relations between Washington and Beijing. Although the two countries agreed to cut back rates to each other on Monday, May 12, imported products from China remained subject to import duties of 30% in the US.

Apple shares jumped 7% in pre-market trading, following a global market strengthening trend following the announcement.

Apple has become one of the largest companies most affected by US-China trade tensions, especially since a series of tariffs were imposed in the era of President Donald Trump. As a result of this tariff, Apple was forced to move some of its production to India.

In a previous report, Apple revealed that the tariff would increase about $900 million in its operating costs in the April quarter of 2025. The company said it would start supplying most of the iPhone to the US market from India in this period.

Prices Can Rise Up To 43%

According to Rosenblatt Securities, the cheapest model iPhone 16 initially priced at $799 could jump to $1,142 due to tariff impact, or an increase of around 43%.

However, Apple has yet to provide official comments regarding the Wall Street Journal report, which comes from the company's internal side.

Apple is rumored to include new features and ultrathin designs as part of a strategy to justify potential price increases.

Rising prices can be a risky step, especially when Samsung and other competitors offer advanced AI features to attract consumers, while Apple is considered slow in this regard.

The move to raise prices could also trigger a political response. Last month, Amazon's Haul unit was criticized by the US government for considering including tariff fees in imported product prices, until it was considered a hostile political act by the Trump administration.