U.S. President Donald Trump said he spoke with Apple Inc. Chief Executive Officer Tim Cook earlier on Monday, just as the iPhone maker was reported to be considering price increases later this year.
Apple is weighing whether to raise prices for an iPhone lineup coming in the fall, the Wall Street Journal reported, citing people familiar with the matter whom it didn’t identify. The company is exploring whether to “couple” price increases with new features and designs, while trying to avoid the perception that any hikes are tied to U.S. tariffs, the Journal reported. Apple didn’t respond to Bloomberg’s request for comment.
A few hours after the Journal report, Trump said he had spoken to Cook. He didn’t address the potential price increases, instead focusing on how he thinks the company will end up raising its U.S. spending plan beyond the $500 billion that it had pledged in February. “He’s going to be building a lot of plants in the U.S. for Apple,” Trump said.
Consumers and analysts have been bracing for Apple price increases for more than a month. Bloomberg News reported in April that the company stocked up on inventory to prepare for the tariffs and that price increases were growing more likely.
Shares of Apple were up as much as 6.4% in New York on Monday at $211.27 as the U.S. and China appeared set to temporarily lower tariffs on each other’s products in a dramatic ratcheting down of trade tensions, spurring a broader rally across markets.