Apple is planning to increase the price of the new iPhone, while remarks by Trump regarding investments and the US-China tariff ceasefire are driving a strong rebound in US stocks.

On May 12, 2025, Apple plans to increase the prices of the new iPhone series set to launch in the fall, without attributing the increase to US-China trade tariffs. Investment advice from U.S. President Trump and the 90-day temporary mutual tariff reduction agreement between the U.S. and China has driven a rebound in the U.S. stock market, with the S&P 500 index rising 14%. Apple's stock price increased by more than 7% in pre-market trading, driven by progress in trade negotiations.

Apple Plans to Raise Prices of New iPhones, Avoids Mentioning Tariffs

According to reports from The Wall Street Journal and TechCrunch, Apple plans to increase the prices of its new iPhone series set to launch in the fall of 2025. Insiders suggest that the price increase is tied to new features and design changes, including the anticipated launch of ultra-thin models. Although most iPhones are still assembled in China, Apple emphasizes that the price increase is not a response to the high tariffs imposed by the US on Chinese goods.

Apple CEO Tim Cook stated that if the current tariff policy remains unchanged, the company could incur around $900 million in extra costs this quarter. According to estimates by Jefferies Investment Bank, of the roughly 65 million iPhones Apple sold in the US last year, more than half were high-end Pro and Pro Max models, which are crucial to the company's overall revenue due to their profit margins.

To lessen dependence on Chinese manufacturing, Apple has gradually shifted some iPhone production to India. However, supply chain adjustments take time, making it challenging to fully avoid tariff impacts in the short term. According to Apple's 10-Q financial report, the company has explicitly stated for the first time that tariffs may force it to "raise product and service prices."

US-China Reach 90-Day Tariff Truce Deal, Market Reacts Positively

The US-China trade talks held in Geneva, Switzerland, concluded on May 12, with both parties announcing a temporary 90-day mutual tariff reduction deal. According to a joint statement from the US Treasury and China's Ministry of Commerce, the US will reduce tariffs on Chinese goods from 145% to 30%, while China will reduce tariffs on US goods from 125% to 10%. Both sides also agreed to establish a stable consultation mechanism to continuously address trade disputes.

This agreement immediately triggered a positive reaction in global markets. According to reports from AP News and NPR, the Dow Jones Industrial Average futures surged over 900 points, the S&P 500 futures rose 3.3%, and the Nasdaq 100 futures soared 4.2%. Tech stocks led the rally, with major companies like Apple, Amazon, and Nvidia seeing significant rebounds in their stock prices.

MarketWatch pointed out that this tariff reduction has a profound impact on the tech industry, particularly for companies reliant on the US-China supply chain, such as Apple, Dell, and Lenovo. The reduction in component costs helps alleviate pressure. Chip manufacturers like Qualcomm and Broadcom may also benefit from reduced manufacturing costs.

Trump's Social Media Investment Advice Draws Market Attention

US President Trump's recent investment advice on social media has also drawn market attention. According to reports from Bloomberg and United Daily News, Trump publicly urged investors on April 9 and May 8 that "now is a good time to buy stocks." These statements were made before he announced a temporary halt to strict tariffs and the US-China tariff truce agreement.

According to Bloomberg statistics, the S&P 500 index rose 14% during this period, marking the best 21-day rolling performance since Trump's two presidential terms, excluding the rebound during the COVID-19 pandemic, indicating the market's high sensitivity to Trump's policy signals.

Pictet Asset Management senior strategist Sai Yi noted, "Trump's market support is once again taking effect. Although his approach is unconventional, the market clearly views the White House as a potential policy support force."

During his first term, Trump was known for frequently expressing policy and market views via social media, with his posts often impacting global financial markets. This time, by once again issuing investment advice through social media and aligning with policy shifts, he further strengthens his influence on the market.

Apple Stock Rises, Market Sentiment Turns Optimistic

After the announcement of the US-China trade deal, Apple's stock rose by more than 7% in pre-market trading on May 12. According to reports from Stocktwits and TechCrunch, market sentiment turned "extremely bullish," and although Apple's stock is still down over 20% year-to-date, investors generally believe that the temporary relief from tariff pressure provides the company with breathing room.

Additionally, Apple estimated in its financial report that if tariffs remain unchanged, it would negatively impact this quarter's revenue by $900 million. While the tariff reduction lasts only 90 days, it's enough to stabilize the supply chain and cost structure for Apple and other tech companies in the short term.

Apple is planning to increase the price of the new iPhone, while remarks by Trump regarding investments and the US-China tariff ceasefire are driving a strong rebound in US stocks.

Key Updates

Futures for the three major U.S. stock indices simultaneously declined: Dow futures fell more than 90 points as investors pay attention to inflation data.

U.S. stock index futures decline: Market sentiment is cautious after the trade agreement, and the three major indices pull back from their highs.

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