Apple hints at iPhone price hike, but blames it on new features, not US tariffs

Dubai: Apple’s next iPhone could come with a higher price tag—but don’t expect the company to blame it on tariffs or trade wars.

According to a report in The Wall Street Journal, Apple Inc. is considering raising prices for its upcoming iPhone lineup, including its premium Pro and Pro Max models. This would mark the first increase in the starting price of its flagship model in nearly a decade. The company hasn't increased the starting price of its flagship iPhone model since it debuted the iPhone X in 2017—keeping it at $999. Still, US President Donald Trump's tariffs have hit Apple's production hubs, namely China, significantly increasing costs for making the smartphones.

Still, Apple is carefully sidestepping any mention of tariffs as a reason. Instead, it plans to point to upgraded features and innovations as justification, insiders told the Journal. CEO Tim Cook recently said Apple expects to shoulder an additional $900 million in tariff-related costs this quarter, Bloomberg News reported. Those charges stem largely from new U.S. tariffs targeting China, a market where Apple still manufactures high-end devices.

But Apple appears intent on keeping those pressures behind the curtain. Instead, the company is betting that customers will pay more if they believe the new models offer meaningful upgrades. One of the rumored changes is a sleeker iPhone design, possibly debuting with the iPhone 17 series later this year. The company is also pushing harder on AI integration, and Cook hinted that new chips and voice assistant upgrades are in the pipeline.

Not just about costs

Apple’s pricing playbook isn’t just about covering costs—it’s also about perception. As smartphone innovation has slowed across the industry, manufacturers are looking for ways to reframe annual upgrades as more than just incremental improvements. With inflation and tariffs quietly cutting into margins, this subtle shift in narrative could help Apple maintain its premium positioning without triggering sticker shock backlash.

Meanwhile, Bloomberg noted that the company is ramping up production of U.S.-bound iPhones in India—an effort to hedge against geopolitical instability and the steep 145% levies the Trump administration has proposed on Chinese goods. While some exemptions have since been made, the risk of future duties looms large over Apple’s global operations.

For now, though, the message from Cupertino is clear: any upcoming price bump is about giving users more—not covering geopolitical costs. Whether that resonates with shoppers later this year remains to be seen.

With Apple’s next big iPhone reveal expected in September, all eyes will be on how much the company dares to charge—and whether buyers buy into the narrative.