APPLE INC. is preparing the ground to increase prices for its new iPhone lineup. The new civics models are scheduled to be rolled out this fall. The company now finds itself amid a geopolitical thicket of tariffs and ongoing trade talks between the U.S. and China. Consequently, they are willing to suffer a predicted increase in price.
The tech giant aims to implement the price adjustments without directly linking them to the ongoing U.S. tariffs on imports from China. Today, that translates into an effective 20% tariff on a multitude of Chinese goods, affecting a wide range of consumer electronics and smartphones. Of course, the U.S. government just made some big exemptions for the tech industry. Despite these tariffs continuing, these exemptions are limited to smartphones, laptops, hard drives and semiconductor manufacturing equipment.
Bloomberg’s Mark Gurman reports that Apple is looking to implement up-front price hikes. Simultaneously, the company is investing in a long-term future where its iPhones are very different from the designs we know today. By 2027, the company could phase out the cutout feature from iPhones entirely. This proposed change would be a huge departure from their overall design philosophy.
The current U.S.-China trade environment has further complicated Apple’s pricing maneuvering. Lately, both countries reached an agreement to suspend their mutual tariffs for 90 days. This decision sets a precedent for future negotiations to settle long-standing trade tensions. This new, albeit just temporary, stay of execution provides Apple with an opening to change its pricing approaches. It allows them to save on additional expenses stemming from tariffs.
Analysts remain alert as to what this move will mean for consumer pricing and overall market dynamics. The company has historically positioned itself as a premium brand, and any increase in prices could impact its customer base, particularly during a time of economic uncertainty.
