Apple plans to raise prices on its upcoming iPhone lineup this fall, but it doesn’t want tariffs to take the blame. The company is preparing to introduce design and feature changes alongside the hike, according to people familiar with the matter.
Internally, executives are working to frame the move around innovation rather than trade politics, despite a lingering 20% U.S. tariff on Chinese smartphones.
High-End Models Still Tied to China
Although Apple has shifted some manufacturing to India, China remains central to the production of its top-tier Pro and Pro Max models. These high-end devices, which account for well over half of iPhone sales in the U.S., still rely heavily on Chinese assembly lines for their complex camera systems and large batteries.
While Indian factories have ramped up, they aren’t yet equipped for the scale and technical precision required to mass-produce premium models, supply-chain sources said.
According to Investment Bank Jefferies, Apple sold around 65 million iPhones in the U.S. last year, with an estimated 36 to 39 million being Pro or Pro Max variants. Given current tariffs, Apple faces rising costs that it can’t fully offset through supplier negotiations. To avoid cutting into profit margins, executives are opting to raise prices instead of absorbing the impact.
Apple Avoids Political Blame
Apple’s leadership has made clear they don’t want to link price hikes to trade policies. The company is especially wary of appearing political after the White House reacted sharply when Amazon explored showing tariff costs to customers. Apple executives see a similar risk if they point to tariffs as the reason behind rising prices.
As reported by The Wall Street Journal, Apple CEO Tim Cook has been moving production of lower-end models for the U.S. market to India, with most iPhones shipped to the U.S. in Q2 expected to originate there. Still, for the most profitable models, Apple remains tied to China. Cook said earlier this month that current tariffs will cost Apple $900 million this quarter alone.
Apple is expected to launch its iPhone 17 lineup this fall. The current iPhone 16 ranges from $799 for the base model to $1,199 for the Pro Max. This year’s update will likely include an ultrathin model replacing the iPhone 16 Plus, which now sells for $899.
Apple continues exploring long-term manufacturing shifts to India and the U.S., but supply-chain planners say meaningful change could take years. India accounted for 13% to 14% of global iPhone shipments last year, with output expected to double in 2025. But even with accelerated growth, India won’t meet full U.S. demand in the near term.
According to TechInsights analyst Abhilash Kumar, India could satisfy both Indian and U.S. demand by 2026 or early 2027. Still, China will remain essential for sourcing components. Jefferies analysts caution that scaling Indian production of high-end iPhones to 40 million units within two years will be a “tall order.”