Apple Inc. is considering increasing the prices of its next iPhone lineup expected this autumn but is taking care not to associate any hikes with U.S. tariffs on imports from China, according to a Wall Street Journal report published on Monday.
The tech giant’s shares surged by 7% in premarket trading, buoyed by broader market optimism after the United States and China agreed to temporarily reduce some reciprocal tariffs. Nonetheless, imports from China—including Apple products—will remain subject to a significant 30% levy in the U.S.
The report, which cited individuals familiar with the matter, underscores Apple’s delicate position amid ongoing U.S.-China trade tensions. The company, whose products are primarily assembled in China, has been a notable casualty of the tariffs first introduced under former President Donald Trump.
Apple has not yet commented publicly on the report. However, earlier this month, the company acknowledged that tariffs were likely to cost it around $900 million during the April–June quarter. In response, it has been ramping up production in India, aiming to source a majority of U.S.-bound iPhones from the South Asian country within the same period.
Industry analysts have been speculating for months about the possibility of a price rise, noting that such a move might offset added costs. Still, they caution that a higher price tag could make Apple vulnerable to competition—particularly from rivals like Samsung, which are gaining traction by integrating advanced AI features that Apple has yet to match.
Currently, the entry-level iPhone 16 model retails for $799 in the U.S., but projections from Rosenblatt Securities suggest that due to tariff-related cost increases, the price could climb as high as $1,142—an increase of approximately 43%.
The Wall Street Journal report adds that Apple plans to package the price increases with new product features and design changes. Among the most anticipated updates is a sleeker, ultrathin design, which the company hopes will justify the higher pricing.
Meanwhile, Apple is not the only major company navigating political and economic headwinds. Amazon.com came under scrutiny from the White House last month when its budget Haul unit considered reflecting tariff-related import costs in prices—prompting the Trump administration to accuse the retailer of political provocation.
Apple’s decision, should it proceed, will test consumer loyalty as well as the company’s ability to balance innovation with affordability in a highly competitive smartphone market.