Apple CEO Tim Cook stated that price hikes on the newest iPhone models are not tied to President Donald Trump’s sweeping tariff plans. Speaking with CNBC’s Jim Cramer from Apple’s Fifth Avenue store as the latest iPhone model was launched globally, Cook was decisive on the issue. “There’s no increase for tariffs in the prices to be totally clear,” he said. This is one of the first times Cook has directly addressed the issue of tariffs in relation to the pricing of iPhones.
Earlier this month, Apple did increase the price of its iPhone 17 Pro model by $100, while maintaining the prices of its entry-level phones. It also introduced an Air model to replace the Plus at a steeper price point. Despite Cook’s public statements, many analysts had widely anticipated price hikes due to the cost of tariffs.
Price Changes and Shifting Strategy
To circumvent these levies, Apple has been pivoting its supply chain to import iPhones to the U.S. from countries with lower tariffs, such as India and Vietnam. Apple has historically produced the majority of its products in China. Cook has also made public appearances with President Trump as the company commits at least $600 billion toward bolstering U.S. manufacturing and supporting domestic suppliers.
The company’s financial reports have shown the impact of the tariffs. During the June quarter, Cook revealed that the company took an $800 million hit from tariff-related costs. He also faces questions about the company’s slow artificial intelligence rollout and rising competition in international markets like China. “We have AI everywhere in the phone,” Cook told CNBC. “We just don’t call it that.”
Author’s Opinion
Tim Cook’s statements highlight the difficult position of a global company in an era of economic nationalism. While Cook publicly denies a direct link between tariffs and the price increases, Apple’s actions—shifting supply chains and making massive U.S. manufacturing commitments—suggest a clear effort to appease the Trump administration and mitigate the financial risks of his trade policies. The company’s strategy is a delicate dance between maintaining its brand image and ensuring its profitability in a volatile political climate, showing that a major tech giant can no longer operate without a keen awareness of geopolitical and domestic political pressures. The public statements are part of a calculated effort to navigate a complex environment where words and actions are scrutinized by both consumers and political leaders.
Featured image credit: Heute
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