Apple could increase iPhone prices, but won't blame Trump's tariffs

[midian182]

A hot potato: As many predicted, Apple is considering raising the prices of its next generation of iPhones this fall. However, the company is keen to avoid blaming Trump's tariffs for increasing the price points of what are already very expensive handsets.

Since President Trump announced the often-changing tariffs on China, there have been fears that Apple, one of the companies that rely heavily on the nation and others in Asia for manufacturing its products, would be forced to raise prices. Some reports claimed the top-spec iPhone could reach $3,500.

Now, even though the US and China have just agreed a 90-day pause on tariffs and reciprocal duties, The Wall Street Journal reports that Apple is considering hiking the prices of the iPhone 17 lineup set for release in the fall.

The WSJ writes that Apple doesn't want to be seen as blaming any tariffs for the price increases – under the current agreement, a 20% tariff that covers smartphones will still be in place when they launch. Instead, the company wants to frame the higher prices as a necessity for all the new and improved features that the next iPhones will sport.

Currently, the iPhone 16E starts at $599, the iPhone 16 is $799 and the iPhone 16 Pro is $999 – those are the base model prices.

Last month, Amazon was blasted by the White House over reports that it was considering showing exactly how much the Trump tariffs will increase the cost of items on its Amazon Haul site. Press Secretary Karoline Leavitt called the move "a hostile and political act," and President Trump rang Amazon founder Jeff Bezos to discuss the matter. Amazon quickly announced that it wasn't following through with the plan. Perhaps Apple has learned the danger of trying to blame tariffs for rising product prices?

In the final week of March, just ahead of the initial 10% tariff, Apple transported five planeloads of iPhones and other products from India and China to the US over a three-day span. It's also been reported that Cupertino is rushing to shift iPhone production for the US to India for 2026.

Trump previously said the ultimate goal of the high tariffs was to bring manufacturing back to the US. But for Apple, which uses 187 suppliers in 28 countries for the device's 2,700+ parts, a US-made iPhone will likely remain a dream.

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Apple could increase iPhone prices, but won't blame Trump's tariffs

 

[wiyosaya]

I'm sorry, but I'm picturing crApple as a dog with its tail between its legs running away from a bigger-looking dog.

 

[Theinsanegamer]

Worth over $3 trillion, but needs more of your money for the phones it cant build in the US, but it CAN build in india.

Make it make sense.

 

[mbk34]

Apart from the high costs of moving whole supply chains to the US, training 1000's of new staff, paying the increased wages that US workers demand over Chinese workers and getting consumers to pay for all those increased costs. What's stopping international businesses like Apple from moving wholesale to America? Do they just not trust the current autocracy?

 

[ScottSoapbox]

I'm sorry, but I'm picturing crApple as a dog with its tail between its legs running away from a bigger-looking dog.

The largest government in the history of the world with increasingly less respect for the rule of law or the constitution that created it is the biggest dog there is.

 

[GodisanAtheist]

Its not surprising companies don't want to list a line item for tariffs.

It's better to obfuscate the increase in price from the end user so when/if tariffs end the cost of the product doesn't have to drop much/at all and the company can just pocket the extra money. Similarly if a product becomes significantly more expensive outside of what you'd expect from tariffs, just vague gesture at "trade uncertainties" and pocket the extra change.

By making it a line item, the company would be putting itself on the hook to actually lower/increase prices in accordance with the tariffs.

Greedflation ain't just a liberal talking point.

 

[DrSuess]

Yes, the price increases after tariffs were announce is just a coincidence, nothing to see just move along. /s

 

[mbk34]

It's better to obfuscate the increase in price from the end user so when/if tariffs end the cost of the product doesn't have to drop much/at all and the company can just pocket the extra money. Similarly if a product becomes significantly more expensive outside of what you'd expect from tariffs, just vague gesture at "trade uncertainties" and pocket the extra change.

At the end of the day, if you guys want to pay 145% extra for whatever comes out of China, then that's up to you. I'd be asking why Trump didn't want customers to see what they would now be paying in tariffs.

 

[godrilla]

Meanwhile in the real world outside the echo chamber China and USA come to some agreement and pause Tarrifs hikes for 90 days.
Dow surges more than 800 points after China and U.S. agree to temporary tariff cuts: Live updates

Source: CNBC
https://search.app/pxC3x

Shared via the Google App

 

[MarcusNumb]

Trump loves to create chaos and uncertainties. I can stop wondering who really benefits from all of this drama cause I don't see American people do. Btw, with or without the "tariffs", Apple will increase their prices anw.

 

[dirtyferret]

"We're going to take in hundreds of billions of dollars in tariffs and we're going to become so rich you're not going to know where to spend all that"

shocking that the orange clown was talking about just rich people when he said "we're going to be become so rich", everyone else can get get screwed as usual

 

[VitalyT]

 

[wiyosaya]

The largest government in the history of the world with increasingly less respect for the rule of law or the constitution that created it is the biggest dog there is.

I make no argument against that impression, but, IMO, crApple is big enough to fight the BS - if they wanted to do so. What crApple thinks they will gain by not fighting is beyond me. IMO, it would be better to fight because somewhere along the line, IF the lawless regime survives, the regime will come for them no matter what they do.

 

[wiyosaya]

Meanwhile in the real world outside the echo chamber China and USA come to some agreement and pause Tarrifs hikes for 90 days.
Dow surges more than 800 points after China and U.S. agree to temporary tariff cuts: Live updates

Source: CNBC
https://search.app/pxC3x

Shared via the Google App

What happens after the 90-day cease fire is anyone's guess.

 

[wiyosaya]

Its not surprising companies don't want to list a line item for tariffs.

It's better to obfuscate the increase in price from the end user so when/if tariffs end the cost of the product doesn't have to drop much/at all and the company can just pocket the extra money. Similarly if a product becomes significantly more expensive outside of what you'd expect from tariffs, just vague gesture at "trade uncertainties" and pocket the extra change.

By making it a line item, the company would be putting itself on the hook to actually lower/increase prices in accordance with the tariffs.

Greedflation ain't just a liberal talking point.

True.

Trump was supposedly thinking of making it illegal for companies to pass along tariffs to consumers. Maybe one of his lawyers was able to talk some sense into him and point out that that would be illegal in the US.

 

[Kashim]

I'd be asking why Trump didn't want customers to see what they would now be paying in tariffs.

The answer is obvious: Trump doesn't want to be blamed for all the ridiculous nonsense he does. He wants everyone else to take the blame. There was an interview a while back where he literally said that. He said when the stock market is up it's 100% because of him. When the stock market is down it has nothing to do with him.

 

[NotYourITguy]

Worth over $3 trillion, but needs more of your money for the phones it cant build in the US, but it CAN build in india.

Make it make sense.

It does make sense when you understand how businesses work and what the purpose of a business is. Hint, it's not to make you feel warm and fuzzy inside.

 

[daffy duck]

If you check his real name is Tim Cuck. Bend the knee or lose thy head.

 

[OortCloud]

Even huge corporations are now afraid to tell the truth about the regime in power now. Welcome to the USA the land of the gagged and the home of ludicrous.

 

[ScottSoapbox]

I make no argument against that impression, but, IMO, crApple is big enough to fight the BS - if they wanted to do so. What crApple thinks they will gain by not fighting is beyond me. IMO, it would be better to fight because somewhere along the line, IF the lawless regime survives, the regime will come for them no matter what they do.

It's simple. Apple doesn't have to mention tariffs to win. Unlike Amazon that sells millions of things with various tariffs, Apple sells a dozen products with one supply chain.

Apple doesn't have say anything because if iPhones are 20% more this year, every media outlet will talk about the tariffs on iPhones for them.

 

[ScottSoapbox]

Its not surprising companies don't want to list a line item for tariffs.

It's better to obfuscate the increase in price from the end user so when/if tariffs end the cost of the product doesn't have to drop much/at all and the company can just pocket the extra money. Similarly if a product becomes significantly more expensive outside of what you'd expect from tariffs, just vague gesture at "trade uncertainties" and pocket the extra change.

By making it a line item, the company would be putting itself on the hook to actually lower/increase prices in accordance with the tariffs.

Greedflation ain't just a liberal talking point.

So Greedflation is talking point for liberals and conservatives that don't understand economics.

You forget that companies are individually "greedy" (seeking profit) so they will undercut each other to take sales from the other "greedy" companies. Look at Amazon for charging cables as an example of companies fighting for customers.

Or look at fast food prices. Why don't the greedy companies sell burgers for $20?

Or construction material prices. Prices surge after major disasters but the come back down after the increased demand is satisfied. Why doesn't greedflation work there?

The only time companies can dictate prices is when they dominate the market (e.g., Nvidia's 85% market share). But even then those extra big profits attract new companies to the market (e.g., Intel dGPUs, ARM new AI chips) which increases competition.