Apple may raise iPhone prices ahead of new launch

Apple is planning to raise prices for its upcoming iPhone lineup set to debut this September, according to a report by The Wall Street Journal citing unnamed sources. While the company has not publicly linked the increases to mounting U.S. tariffs on Chinese imports, the report suggests Apple is working to present the price hikes as a result of new features and innovations rather than external economic pressures.

Sources familiar with Apple’s supply chain say the company may justify the higher costs by pointing to new designs and advanced features in this year’s iPhones. It have long speculated that Apple would increase prices as part of its strategy to maintain profit margins amid rising production costs.

The tariff war has nevertheless had a measurable financial impact. Apple is expected to incur around $900 million in additional costs during the third quarter due to increased tariffs. To offset these expenses, the company has been shifting more of its iPhone production to India, reducing its dependency on Chinese manufacturing. This move is part of a broader effort to diversify its supply chain and shield its operations from geopolitical disruptions.

Meanwhile, the trade situation remains fluid. On Monday, the United States and China agreed to a 90-day pause on reciprocal tariffs to allow for further negotiations. The U.S. government has also issued significant tariff exemptions for the tech industry, including smartphones, laptops, and semiconductor equipment. However, an earlier 20% tariff on a wide array of Chinese goods still applies, complicating long-term pricing strategies for companies like Apple.

In terms of product innovation, Apple is expected to unveil an ultra-thin iPhone this year, part of a broader push toward more dramatic redesigns. According to Bloomberg’s Mark Gurman, the company is aiming for a major milestone in 2027: the release of a “mostly glass, curved iPhone” with no visible cutouts, marking the 20th anniversary of the original iPhone. If realised, this design would echo Apple’s trend of introducing major changes every decade, following the introduction of the iPhone X in 2017.