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Apple is considering a price boost for its next-generation fall iPhone series, based on a Wall Street Journal scoop that has created waves in the tech and investor circles. The price boost comes ahead of Apple's plans to announce a crop of new features and redesigns, as it seeks to explain the added expense to customers without laying blame for it on U.S.-China trade tensions.
Key Highlights:
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Apple is weighing price increases in its next-generation iPhone lineup, which is set to launch this fall, as it introduces new features and a new design.
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The firm is eager to preempt any notion that the price increase is due to ongoing U.S. tariffs on Chinese imports, even though most of the iPhones remain made in China.
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Insiders say Apple's supply chain continues to be strongly dependent on China for its premium Pro and Pro Max models, although the firm is stepping up a push to transfer some manufacturing to India.
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The new lineup, known as probably being the iPhone 17, could introduce an entirely new ultra-slim "iPhone 17 Air" model, substituting for today's Plus version and continuing to segment the range.
Apple's shares rose up to 7% in premarket trading after the news, showing investors' confidence that the company will be able to sustain margins in the context of worldwide supply chain pressures.
Industry experts say Apple's decision is aimed at protecting profit margins against increasing expenses, and the company wants to present the price hike as an upgrade based on value and not a necessity to keep tariffs down.
As the world's smartphone market waits with bated breath, Apple's next step could forever redefine the concept of premium pricing in the technology sector.
Sources: Wall Street Journal, Reuters, Economic Times, MacRumors, Yahoo Finance
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