Apple contemplates hiking iPhone prices

Apple (AAPL.O), opens new tab is mulling price hikes for its forthcoming fall iPhone lineup but is careful to avoid connecting any increases to U.S. tariffs on imports from China, where most of its devices are produced, the Wall Street Journal reported on Monday.

The technology giant’s shares were up 7% in premarket trading, reflecting advances in the wider market after Washington and Beijing agreed to temporarily lower the reciprocal tariffs on Monday. However, the United States will continue to impose a 30% tax on Chinese imports.

Apple is among the most prominent firms caught in U.S.-China trade tensions, which intensified in recent months after a series of tariffs initiated by President Donald Trump.

The company did not immediately respond to a Reuters request for comment on the WSJ report, which cited people familiar with the matter. Raising prices could help Apple cushion higher costs stemming from the tariffs that have hampered global supply chains and forced the company to shift more production to India.

Apple said earlier this month that tariffs were expected to add about $900 million in costs during the April-June quarter and that it would source a majority of the iPhones sold in the U.S. in the period from India.