Apple (AAPL) CEO Tim Cook is disputing claims that the price increase on the new iPhone 17 Pro model is due to U.S. President Donald Trump’s sweeping tariffs, particularly on goods made in China.
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“There’s no increase for tariffs in the prices to be totally clear,” said Cook in a media interview that coincided with the global launch of the new iPhone 17 models on Sept. 19. The remarks are among the first that Cook has made about tariffs and their impacts on Apple.
The consumer electronics giant makes the majority of its products in China and India and has been hit hard by President Trump’s import duties. Apple has increased the price of its iPhone 17 Pro model by $100, while maintaining prices for entry-level versions of the smartphone.
Tariff Dodge?
Many analysts have speculated that the price hike on the iPhone 17 Pro model is the result of tariffs, though some have also expressed surprise that more Apple products have not seen price increases. Cook and his management team have taken several steps to try and dodge tariff impacts.
Apple has pivoted its supply chain to import iPhones to the U.S. from lower-tariff countries, such as India and Vietnam. Apple has also committed to spend at least $600 billion to bolster U.S. manufacturing and support American suppliers.
However, despite these and other efforts, Apple hasn’t been able to completely avoid tariff impacts. For this year’s second quarter, Apple reported that it took a $800 million hit from costs tied to tariffs and other import duties.
Is AAPL Stock a Buy?
The stock of Apple has a consensus Moderate Buy rating among 34 Wall Street analysts. That rating is based on 18 Buy, 14 Hold, and two Sell recommendations issued in the last three months. The average AAPL price target of $249.34 implies 2.43% upside from current levels.
