Apple CEO Tim Cook said price hikes on the newest iPhone models aren’t tied to President Donald Trump’s sweeping tariff plans.
“There’s no increase for tariffs in the prices to be totally clear,” Cook told CNBC’s Jim Cramer from Apple’s Fifth Avenue store location in New York City, as the latest iPhone model launched in stores worldwide.
It is one of the first instances in which Cook has decisively addressed tariffs in relation to iPhone prices.
Earlier this month, Apple increased the price of its iPhone 17 Pro model by $100, while maintaining the prices of its entry-level phones. It also introduced an Air model that replaced the Plus at a steeper price point.
Many analysts had widely anticipated price hikes despite Cook’s attempts to dodge tariffs.
To circumvent the levies, Apple has pivoted its supply chain to import iPhones to the U.S. from lower tariff countries, such as India and Vietnam. Apple has historically produced a majority of its products in China.
Cook has also made public appearances with Trump as the company commits at least $600 billion toward bolstering U.S. manufacturing and supporting suppliers.
During the June quarter, Cook revealed that the company took an $800 million hit from costs tied to tariffs.
At the same time, Apple faces questions about its slow artificial intelligence rollout, as well as rising competition in international markets such as China.
“We have AI everywhere in the phone,” Cook told CNBC on Friday. “We just don’t call it” that.
