Even as a new deal between China and the US rolls back high tariffs for the next 90 days, the Wall Street Journal reports that Apple has plans to raise iPhone prices later this year, whether tariffs rise again or not.
The price hike would cover the iPhone 17 line, expected to be released in the fall, which could include a rumored ultraslim new "Air" model and new features, such as increased RAM across the phone line. These phones would include iOS 19, which could bring significant software changes and improvements to the company's AI system, Apple Intelligence.
The Wall Street Journal reports that Apple is trying to position any pricing increase as being prompted by improvements to the products, not tariffs, although a 20% tariff that covers smartphones would still be in place -- at least under the current agreement -- by the time the new iPhones launch.
The current prices for base iPhone models start at $599 for the iPhone 16E, $799 for the iPhone 16 and $999 for the iPhone 16 Pro.
Apple has already made moves to stockpile current inventory because of tariffs, and has reportedly made plans to shift more of its iPhone production to India and Vietnam.
Apple did not respond to a request for comment.
How new pricing could play out
Whether Apple chooses to raise iPhone prices and by how much could still change between now and later this year.
"Apple has to thread the needle here," said Andy Tsay, a professor of information systems and analytics, and one of two market experts from the Leavey School of Business at Santa Clara University to weigh in on the potential price increase.
Tsay said that no matter what Apple does, Android fans will say its phones are underpowered and overpriced. However, Tsay said, "Along with the coverage of the Trump tariffs in general, Apple has been the subject of an even higher level of attention in the last few weeks, which I think is an advantage.
"Everybody is on edge about the worst-case scenario, so if we end up with just a modest price hike, Apple doesn't really need to say anything specific about the reasons, as long as it presents some reasonable portfolio of improvements," he said.
If Apple keeps prices the same, that would also be considered a win, Tsay said.
As to the improvements Apple might present, modifying internal memory to make AI perform better might be an internal improvement that customers actually care about.
"The rapid adoption of AI suggests consumers are ready for some really powerful AI tools and the ability to use AI features that are personalized for them," said Kirthi Kalyanam, distinguished professor and executive director of the Retail Management Institute at the Leavey School of Business. "Such features might mean regular hardware like (more) RAM to run locally on the phone. This is not a nice-to-have but a must-have."
Price increases on the high-end models, however, could be "pushing the price envelope," Kalyanam said. "The current iPhone 16 Pro Max with 512GB of storage is already priced at $1,399. At what point will consumers revolve and delay upgrades?"