Apple will reportedly increase prices for new iPhone lineup

Apple is reportedly considering price hikes for its new iPhone lineup due later this year. The Cupertino technology giant will attribute these increases to new features or designs, rather than the ongoing tariff war between the US and China. 

On Monday, May 12th, 2025, the US and China agreed to slash their reciprocal tariffs down to 10% from the previously absurd 125%. A separate 20% tariff imposed on China will also remain in effect. The new rates will remain in effect for 90 days till both sides reach a deal. 

The Wall Street Journal says Apple's most profitable iPhone models, the Pro and Pro Max, will continue to be manufactured in China. Sources within the supply chain told the publication that Apple will likely see a hit to its profit margins unless it increases prices.  

Apple was considering a massive restructuring of its supply chain, aiming to produce 60 million iPhone units annually in India. However, the infrastructure and technology aren't enough to support mass production yet.

The WSJ's sources mention the new camera systems and bigger batteries as potential problems. According to the report, Apple executives are also wary of blaming the price increases on tariffs. They will look to explain the hike through new features or design elements in the upcoming iPhones. 

Apple CEO Tim Cook has previously stated that the new tariffs could add up to $900 million in additional costs for the quarter. Cook also noted that major iPhone models sold outside the US will continue to be sourced from China.