As Apple’s newest iPhones hit stores worldwide, CEO Tim Cook pushed back on speculation that recent price hikes were linked to U.S. trade tariffs. Speaking from Apple’s flagship Fifth Avenue store in New York City, Cook directly addressed the issue, clarifying that tariffs were not behind the higher sticker prices.
“There’s no increase for tariffs in the prices to be totally clear,” Cook told CNBC’s Jim Cramer.
Earlier this month, Apple raised the cost of its iPhone 17 Pro by $100, while holding prices steady for entry-level models. The company also introduced a new iPhone Air, replacing the Plus version, but at a higher price point. Analysts had widely expected price increases, even before Cook’s clarification.
To avoid tariff-related costs, Apple has restructured parts of its supply chain, shifting iPhone production from China to countries like India and Vietnam. Although Apple still manufactures heavily in China, these moves have helped reduce exposure to U.S. trade policies.
Cook has previously acknowledged the impact of tariffs, noting that Apple absorbed an $800 million hit during the June quarter. Still, he emphasized that the latest price adjustments were unrelated to those costs. Apple has also been making a show of its U.S. commitments, pledging at least $600 billion toward domestic manufacturing and supplier support, while Cook himself has made appearances alongside former President Donald Trump.
Beyond tariffs, Apple faces fresh challenges. Its artificial intelligence rollout has been criticized as slow compared to rivals, and its position in overseas markets like China is under growing pressure.
Cook, however, defended Apple’s approach: “We have AI everywhere in the phone,” he said. “We just don’t call it that.”
While Apple’s latest pricing strategy has stirred debate, Cook insists that tariffs aren’t to blame. Instead, the company is positioning itself to balance higher-end product tiers, diversify its supply chain, and reassure investors that its long-term strategy both in the U.S. and abroad, remains on track.
