TECH giant Apple is set to raise prices on its upcoming iPhones – but insists the hike is driven by new features, not US tariffs on Chinese imports.
The iPhone 16 base model, expected to start at $799, could skyrocket to over $1,100, according to analysts at Rosenblatt Securities – a jump of over 40 percent.
GettyThe new iPhone 16 could cost over $1,100, according to analyst projections[/caption] APApple says the price jump is due to new features – not US tariffs on Chinese imports[/caption] AFPBut tariffs have already pushed Apple to shift more of its iPhone production to India[/caption]Apple’s projected price surge on its upcoming fall iPhone lineup was revealed by the Wall Street Journal.
It comes as the tech giant faces rising costs from a 30 percent US import levy on products from China – where most iPhones are still assembled.
This is a costly hit for companies like Apple, even as its shares jumped 7 percent in premarket trading, lifted by broader market optimism after Washington and Beijing agreed to temporarily ease tariffs.
But Apple executives have refused to link the price bump to US President Donald Trump’s trade war with China, according to the WSJ.
Instead, Apple has attributed the hike to the iPhone’s new features, including a sleek ultrathin design.
CEO Tim Cook said earlier this month that the company expects US tariffs to add around $900 million onto its costs this quarter.
Analysts have warned for months that a price increase was likely – and could be risky – especially as rivals like Samsung roll out AI-powered smartphones to lure consumers.
The company remains one of the biggest US firms that will be affected by the trade tensions between the two countries.
In early May, Apple CEO Tim Cook revealed that the tech giant raked in $95.4 billion in revenue last quarter but warned that tariffs could soon impact its bottom line.
Cook said Donald Trump’s tariffs had a “limited impact in the March quarter, due to optimizations of our supply chain and inventory” during Apple‘s earnings release.
But he warned that the trade environment may change.
Cook noted the company expects a greater impact from tariffs in the next quarter.
He said: “Assuming the current global tariff rates, policies, and applications do not change for the balance of the quarter, and no new tariffs are added, we estimate the impact to add $900 million to our costs.”
During the analyst Q&A, Cook said that “build-ahead in the manufacturing purchase obligations” could benefit the company in the June quarter.
He also talked about plans to expand in the US, with Apple set to spend $500 billion over the next four years to build facilities in several states.
In April, Apple arranged last minute flights to transport 600 tons of iPhones to the US from India to get ahead of Trump’s tariffs.
The American tech giant reportedly chartered flights for 1.5 million phones.
Apple lobbied Indian airport authorities to slash time in customs at Chennai airport in south India down from 30 hours to just six, Reuters reported.
Six cargo jets with a capacity of 100 tons have flown out since March, the source and an Indian government official said.
An iPhone 14 and its charging cable weighs around 350 grams in packaging, based on Reuters measurements, which suggests the ferried cargo could include up to 1.5 million iPhones.
Best iPhone deals May 2025
* Prices are accurate at the time of writing by reporter Shanine Bruder and may be subject to change. To get the best deal on a new iPhone, make sure you shop around.
iPhone 16e deals
iPhone 16e pay-monthly deals include:
What is the best iPhone?
iPhone 16e
iPhone 16e, from £599
BUY FROM APPLEFeatures: Aluminium design, 6.1‑inch (diagonal) all‑screen OLED display, A18 chip, 48MP Fusion camera, Action Button, 4K Dolby Vision video recording, up to 26 hours of video playback.
Pros
Massive battery life Future-proofed (A18 chip for Apple Intelligence, USB-C) Useful Action Button replaces the Mute Switch Bigger 6.1-inch screen and Face ID Beautiful OLED display Great value for moneyCons
No MagSafe charging Only two coloursThe iPhone 16e is a sort of spiritual successor to the old iPhone SE series and features a large 6.1-inch OLED display.
It boasts an Action Button, Face ID, an AI-friendly chip, and an impressive battery life.
Our Tech Editor adds: ”If you can overlook a couple of minor niggles (lack of MagSafe and a price increase) then you’ll be able to bag one of the best-value smartphones available today.”
iPhone 16 Pro / iPhone 16 Pro Max
iPhone 16 Pro, £999 and iPhone 16 Pro Max, £1,199
BUY FROM APPLEFeatures: Titanium design, Pro Max has a 6.9‑inch Super Retina XDR display and up to 27 hours of video playback, Pro has a 6.3-inch Super Retina XDR display and up to 33 hours of video playback, 48MP Pro Camera System, action button, Camera Control button.
Pros
The Pro Max has a 6.9-inch panel is the biggest on any iPhone ever Built from a lightweight titanium Upgraded A18 Pro chip 48-megapixel Fusion cameraCons
Expensive Large size might not suit you if you prefer a smaller deviceAs with the iPhone 16, which is listed below, you will enjoy an array of features, including Dynamic Island, Action Button, and a new Camera Control.
The Action Button replaced the Mute Switch on the iPhone 15 Pro in 2023.
Both models feature impressive displays, with the Pro boasting a 6.3-inch display, and the Pro Max has a 6.9-inch panel – that’s the biggest on any iPhone ever.
There’s also a new 48-megapixel Fusion camera that’s capable of shooting 4K video in Dolby Vision at 120 frames per second, and you can capture footage at 4K120fps in Slow-Mo.
iPhone 16 / iPhone 16 Plus
iPhone 16, £799 and iPhone 16 Plus, £899
BUY FROM APPLEFeatures: Aluminium design, Dynamic Island, Action Button, a new Camera Control button, A18 chip, 48MP Fusion camera, 6.1‑inch Super Retina XDR with up to 22 hours of video playback (iPhone 16), 6.7‑inch Super Retina XDR with up to 27 hours of video playback (iPhone 16 Plus)
Pros
New Camera Control button Action Button Powerful new A18 processors Dynamic Island Five new coloursCons
60Hz refresh rate remains No change in brightness The dynamic island is either a love-it-or-hate-it featureAlso part of Apple’s 16 series is the iPhone 16 and the iPhone 16 Plus.
There’s an Action Button and a Camera Control button – click it once to launch the camera, and then again to take the snap.
You’ll also enjoy a new Ceramic Shield on the outside that’s supposed to be 50% tougher than the original version.
Like the Pro models, there’s a new A18 chip inside and an impressive camera system.
Apple’s iPhone 16 has a new Ultra Wide lens for macro photography.
HOW TO RECYCLE YOUR OLD IPHONE
If you want to get your old iPhone recycled because it's not worth anything, you'll need to get it ready first
[Name] > iCloud > iCloud Backup.
General > Transfer or Reset iPhone > Erase All Content and Settings.
If you’re sending it in by post, Apple says you must follow these rules for safety:
Do not send loose batteries. Discharge the unit to less than 30%. Do not send electronics that are disassembled into parts. Do not send electronics with swollen, damaged or defective batteries. For whole units, surround the product with at least 6 centimetres of suitable filler material, such as recycled or reused packaging, before placing it inside a corrugated box. Send only one device per box.That’s because your iPhone contains a lithium-ion battery, which can pose safety risks if they’re not stored or transported properly.
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