In the fall of 2025, the prices of the iPhone 17 series products will see an increase. Apple has explained the reasons for the price hike, but did not mention any tariff factors.
According to a report from The Wall Street Journal on May 12, Apple’s CEO Tim Cook is dealing with the supply chain pressure brought about by the US-China trade conflict.
When explaining the reasons why the upcoming new iPhone will see a price increase, Apple stated that the addition of new features and ultra-thin design led to the price adjustment. However, there was no mention of any factors related to the tariff war targeted at China by President Trump.
The US and China reached an agreement on Monday to pause most of the tariffs in the trade war. However, the 20% tariff imposed by Trump on imported goods from China at the beginning of his second term due to the fentanyl issue still includes smart phones.
For many years, most of Apple’s products have been assembled in China, particularly the high-end iPhone Pro and Pro Max models. Sources revealed that Chinese factories still dominate the production of these models because India’s infrastructure and technological capabilities cannot meet the demands for large-scale production.
According to data from JFury Bank, Apple sold around 65 million iPhones in the US in 2024, with 36 to 39 million of them being Pro or Pro Max models.
To mitigate the impact of tariffs, Apple is accelerating the shift of its production targeted at the US market to India.
Cook disclosed that the majority of iPhones shipped to the US from April to June will originate from India. In 2024, India accounted for 13% to 14% of the global iPhone shipments, a number expected to double this year.
Analyst Abhilash Kumar from TechInsights commented that by early 2027, India might be able to meet the demands of the US and Indian markets, but China will still be a key source of essential components.
It is evident that Apple is navigating through challenges posed by the ongoing global trade dynamics to ensure the smooth continuation of its operations and product offerings on the international stage.