Apple’s Tim Cook denies tariffs behind iPhone price hikes
Supply chain shifts to India and Vietnam reportedly helped Apple sidestep Trump’s levies, even as new models get pricier.
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Apple CEO Tim Cook has dismissed speculation that recent iPhone price hikes are linked to U.S. trade tariffs, insisting that the increases reflect other factors. Speaking to CNBC from Apple’s flagship Fifth Avenue store in New York, Cook emphasized, “There’s no increase for tariffs in the prices to be totally clear,” as the company’s latest iPhone lineup hit global shelves.
Earlier this month, Apple raised the price of its flagship iPhone 17 Pro by $100 while keeping entry-level models unchanged and introducing a new Air model at a higher price point.
Apple has strategically diversified its supply chain to mitigate tariff risks, shifting production from China to India and Vietnam. Cook also highlighted Apple’s $600 billion commitment toward U.S. manufacturing and suppliers, even as the company disclosed an $800 million tariff-related cost hit in the June quarter.
Beyond tariffs, Apple faces increasing scrutiny over its measured approach to artificial intelligence and growing competition in key markets like China. Cook, however, defended the company’s strategy, noting, “We have AI everywhere in the phone. We just don’t call it that.”
It is to be noted that Apple burgeoning iPhone exports from India to the United States appear to be shielded, for now, from the latest 25% tariffs announced by President Donald Trump on South Asian imports.
Apple has rapidly escalated its manufacturing presence in India as part of a strategic shift away from China.
The Trump administration had previously, in April, granted an exemption for smartphones, computers, and other electronic devices from reciprocal tariffs. This carve-out provided a crucial lifeline to tech giants like Apple and Nvidia Corp., given that most of these electronic devices are not domestically manufactured in the US.
India has emerged as a powerhouse in global iPhone production, now accounting for over a fifth of the worldwide output. Notably, it has even surpassed China to become the leading supplier of iPhones to the American market, a testament to Prime Minister Modi's "Make in India" initiative, which has actively courted global investors.
