Apple (AAPL) Weighs iPhone Price Hikes to Offset Tariff Pressures
From Nasdaq: 2025-05-12 15:50:00
Apple is considering raising iPhone prices to offset $900 million in tariff costs without directly linking hikes to U.S. tariffs. The plan includes bundling price increases with design and feature upgrades to justify higher prices.
Shares of Apple surged 7% in premarket trade following a U.S.-China tariff truce, but a 30% tariff on Chinese imports remains. The company aims to shift more iPhone production to India to reduce future tariff exposure.
Analysts warn that higher iPhone prices could affect market share amid competition from Samsung’s AI push. The move to increase prices will be paired with new design and AI features to entice consumers.
Investors are waiting for formal announcements from Apple this summer to see how the company navigates margin pressures without losing market momentum. The outcome will determine if Apple can maintain its premium position in the face of changing economic and competitive conditions.
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