Apple is reportedly considering a price hike for its upcoming iPhone models due to the escalating tariff war between the United States and China. With most of Apple’s iPhones currently assembled in China, the company may soon face a substantial financial burden that could directly impact customers.
USD 900 million tariff burden for Apple
According to a report from The Wall Street Journal, the ongoing trade tensions between China and the US could result in reciprocal tariffs of up to 30 per cent on imported electronics. This could potentially cost Apple USD 900 million (approx. Rs 7,638 crore) in added expenses.
To balance this added cost, Apple may pass on the burden to consumers by increasing the price of its iPhones. For instance, the iPhone 16, which launched in the US last year at USD 799 could go up to USD 1,142, representing a 30 per cent hike.
India’s growing role may offer some relief
India has emerged as a significant player in Apple’s global supply chain. With production shifting gradually from China to India, Apple could save on tariffs and reduce its dependency on Chinese manufacturing.
India currently imposes lower tariffs compared to China, making it a viable alternative for large-scale iPhone assembly. This move could help the company keep future price hikes in check, at least in markets like India.
Apple faces added pressure from Samsung’s AI push
Apart from potential pricing issues, Apple is also under pressure to keep up with competitors like Samsung. The South Korean brand has already integrated powerful AI features into its smartphones, and Apple has begun responding by integrating Chatgpt-based features into its new iPhones.
However, if iPhone prices rise significantly, Apple could lose ground in the competitive smartphone market, especially in regions where Samsung is aggressively pushing AI-led innovations.
No official statement yet from Apple
So far, Apple has not issued an official response regarding the potential tariff-related price increase. However, the market is watching closely, and any confirmation may influence buying decisions for millions of iPhone users worldwide.
Stay tuned for further updates as the situation develops.