Apple iPhones May Get Costlier By Rs 28000- What's Fueling The Price Surge?

Apple is considering raising prices for its upcoming iPhone lineup this fall, according to a report by the Wall Street Journal (WSJ). However, the tech giant is trying to avoid directly linking any price hikes to U.S. tariffs on Chinese imports, where most of its devices are still assembled.

Following the news, Apple shares rose about 7% in premarket trading, reflecting broader market gains after the U.S. and China agreed to temporarily reduce reciprocal tariffs. Still, Chinese imports will continue to face a 30% levy in the U.S.

Apple is one of the most well-known companies caught in the ongoing U.S.-China trade dispute. The tensions grew under President Donald Trump’s administration due to increasing tariffs. Apple has not commented on the WSJ report, which cited people familiar with the matter.

Tariffs To Disrupt Global Supply Chains

Raising iPhone prices could help Apple manage increased costs from the tariffs, which have disrupted global supply chains and pushed the company to expand production in India. Apple previously said that tariffs would raise its costs by about $900 million (approx Rs 7,500 crore) during the April-June quarter. It also mentioned that most iPhones sold in the U.S. during this period would come from India.

Analysts have long speculated about Apple increasing prices, but some warn that this could lead to losing market share, especially as competitors like Samsung add AI features faster than Apple.

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Rs 28,000 or 43% Costlier

The WSJ report also said Apple plans to combine price hikes with new features and a redesigned ultrathin iPhone. Rosenblatt Securities estimates that if Apple passes on the extra costs to customers, the cheapest iPhone 16 model—launched at $799 (approx Rs 66,000)—could cost up to $1,142 (approx Rs 94,000), a Rs 28000 or 43% increase.

Apple will still manufacture its high-end Pro and Pro Max models in China. "While Apple CEO Tim Cook has expressed hopes that most iPhones destined for the US market will eventually be manufactured in India," the WSJ report noted, "the country still lacks the necessary infrastructure and technical expertise."

US-China Tariff Truce 

Meanwhile, the U.S. and China issued a joint statement from Geneva saying both nations will reduce tariffs to ease tensions and allow more time to settle trade differences. The combined U.S. tariffs on Chinese goods will fall to 30%, and Chinese tariffs on U.S. goods will drop to 10%.

"We had a very robust and productive discussion on steps forward on fentanyl," Treasury Secretary Scott Bessent said. "We are in agreement that neither side wants to decouple."

Trade Representative Jamieson Greer added, "The US wants to have more balanced trade with China."

The U.S. will cut extra tariffs it imposed on Chinese imports in April this year to 30% from 145%, and Chinese duties on U.S. imports will fall to 10% from 125%, the two sides said on Monday. The new measures are effective for 90 days.