Apple is reportedly planning to raise prices for its upcoming iPhone lineup this fall. According to a recent Wall Street Journal article, this decision is being paired with new features and design updates. People familiar with the matter say Apple is strategically managing this move to ensure it does not appear linked to U.S. tariffs on Chinese imports. Although the U.S. and China recently agreed to suspend many of the tariffs from their trade war, a 20% tariff remains in place on Chinese goods, including smartphones. This policy, introduced during former President Trump’s second term, still impacts Apple’s cost structure, especially as most high-end iPhones are assembled in China. Despite some production shifting to India, China remains critical for Apple’s Pro and Pro Max models due to its manufacturing scale and expertise.
Consumers turn to secondary market
Market research shows that if consumers see a 30% or greater price gap between a new and a refurbished Apple iPhone, they are significantly more likely to opt for a pre-owned model. With Apple planning to raise prices for new devices, refurbished and used Apple iPhones are set to become even more attractive.
Secondary market could face supply pressure
While this development is positive for the secondary market, it may tighten supply over time. More consumers looking for affordable Apple iPhones could reduce availability of quality used stock, especially if new Pro and Pro Max models become significantly more expensive. However, prices for refurbished devices are unlikely to increase at the same rate, keeping them competitive for budget-conscious buyers.
Apple faces $ 900 million in new costs
CEO Tim Cook has acknowledged the impact of current trade policies, stating that they will lead to $900 million in additional costs this quarter alone. To offset risks, Apple is increasing inventory and expanding production in India, though full migration would take years and require advanced automation to maintain competitiveness.
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