By coinnews 
00:00 Speaker A
Well President Trump says he spoke with Apple CEO Tim Cook this morning following an agreement by the US and China to temporarily lower tariffs. Meantime a Wall Street Journal report out this morning saying Apple is considering price increases for its fall lineup. The tech giant does not want to attribute the price hikes to any tariffs on Chinese goods. Here to put it all together for us, Market Domination co-host, Josh Lipton. Hey Josh.
00:22 Josh Lipton
Hey there. So, could your new iPhone this fall cost more? Well the journal says, it just might. Reporting that Apple is considering prices, price increases for the fall iPhone lineup. The US and China did agree to suspend tariffs but a 20% tariff President Trump imposed remains in place over Fentanyl. Remember, he did exempt smartphones from a separate reciprocal tariff on Chinese goods, which will temporarily now fall to 10% under the new deal. Yes, Apple we know is making moves with its supply chain, but the journal is saying China will still handle the bulk of production for its most profitable, high-end phones. So Apple is considering raising prices to protect its margins. How would such a decision be explained to the Apple fan? By adding new features and design changes rather than pinning it on the Trump tariffs. There is a lot we don’t know still here of course. If prices were indeed raised, by how much? Recall the current iPhone 16 base model starts at 7.99. And what new features and design changes could these new models actually boast? Well, there are as always, different reports and rumors but we don’t know for certain because Apple will be as always very tight-lipped on that front. Apple did say on that earnings call earlier this month that the current Trump tariffs would translate into $900 million in additional costs in this quarter. Now for more insight, I just got off the phone with Gene Munster over at Deepwater Asset Management. Munster is a long time Apple analyst. He bets if tariffs stay at that basic 10%, Apple could raise iPhone prices by 5% in the fall. If we don’t see a resolution though, then prices could go up even more. What would all that mean for demand? Munster says a 5% hike wouldn’t change much in his opinion. More than that however, could mean more of a significant impact, Maddie.
02:22 Speaker A
Alright, Josh, great overview as always. Really appreciate you making the time for us. Thank you.