Thought Leadership
Apple is apparently considering a price increase for the iPhone generation to be released in the fall. However, according to the Wall Street Journal, which cites anonymous sources, the company wants to avoid these price adjustments being linked to the US tariffs on imports from China.
Instead, the Cupertino-based manufacturer plans to justify the price increases with other developments, possibly including new features and design changes, the report said, citing unnamed supply chain sources.
High additional costs due to trade war
The stricter tariffs are likely to cost Apple around 900 million US dollars in the third quarter. However, the iPhone manufacturer has not yet confirmed whether the trade conflict between the USA and China will have an impact on end customer prices. As a countermeasure, Apple is now importing a larger proportion of its iPhones from India instead of China in order to reduce the customs burden.
Relaxation in sight?
On Monday, however, the US and China agreed to suspend their mutual punitive tariffs for 90 days in order to create space for further talks. The Trump administration has also announced significant tariff relief for the technology sector, particularly for smartphones, laptops, hard disks and semiconductor manufacturing machinery. However, a previous tariff of 20% on Chinese goods remains in force.
