Apple Inc (NASDAQ:AAPL, ETR:APC) is considering raising the prices of its fall iPhone lineup along with the release of new features and design changes, according to a Wall Street Journal (WSJ) report citing people familiar with the matter.
The company did not attribute the price hikes to US tariffs on China, which are estimated to have cost Apple an estimated $900 million in additional expenses for the current quarter alone.
Sources told the WSJ that Apple executives are reluctant to blame the price increases on tariffs because this would be negatively received by the Trump administration.
While Apple has absorbed these costs so far, the company is expected to pass some of these costs onto consumers through price increases.
Apple has shifted much of its iPhone production for the US market from China to India to mitigate tariff impacts. However, Indian factories currently lack the capacity to mass-produce Apple's most profitable models, meaning China will still produce the majority of iPhones globally.
Shares of Apple added 5.6% at about $210 on Monday morning as the US and China over the weekend made progress in negotiations to lower tariffs.