Tim Cook Dispels Tariff Myths as Apple Raises iPhone Prices Amid AI and Market Challenges

Apple CEO Tim Cook has clarified that the recent price increase for the latest iPhone models is not associated with the broad tariff policies implemented under the Trump administration. This statement was made during Cook's visit to Apple's Fifth Avenue store in New York, coinciding with the global rollout of the new iPhone models. He emphasized, "To be very clear, there are no additional costs from tariffs included in our product prices."

This marks Cook's first explicit response to the speculation about tariffs influencing iPhone pricing strategies. Earlier this month, Apple raised the price of the iPhone 17 Pro by $100 while keeping the entry-level model's price unchanged. Additionally, Apple introduced an Air model to succeed the previous Plus version, priced higher than its predecessor.

Despite Cook's efforts to mitigate the impact of tariffs, many analysts had previously anticipated a price increase for iPhones. In seeking to avoid the tariff burden, Apple has restructured its supply chain to import iPhones from countries like India and Vietnam, where tariff costs are comparatively lower.

Cook has also made joint public appearances with Trump, reaffirming Apple's pledge to invest at least $600 billion in bolstering U.S. manufacturing and supporting its suppliers. Nevertheless, Cook disclosed that in the second quarter of this year, tariffs still inflicted an $8 billion impact on Apple, a significant challenge despite strategic maneuvers.

In addition to tariff-related concerns, Apple faces scrutiny over its perceived slow integration of artificial intelligence (AI) features and the intensifying competition in international markets. Cook, addressing these criticisms, stated, "Our phones are infused with AI technology everywhere; we just don't call it that."