The Scoop: Apple wants to raise prices on iPhones – but avoid Amazon’s fate

When Amazon even suggested showing the impact of tariffs on certain prices last month, reprisal from the White House was swift, with the press secretary dubbing it a “hostile and political act.” Amazon ultimately denied that the move ever would have been rolled out externally. The snafu was quickly smoothed over with a phone call between President Donald Trump and Amazon’s Jeff Bezos, but it was still a messy news cycle.

Now, Apple is working to avoid these same missteps as it eyes raising prices on iPhones, which are largely manufactured in China, without seeming to blame the increased tariffs for the additional cost.

The Wall Street Journal reports that Apple is “determined to avoid any scenario in which it appears to attribute price increases to U.S. tariffs on goods from China, where most Apple devices are assembled,” according to sources. Instead, it may point to new features to justify the cost, though it wasn’t immediately clear what those features were, exactly.

Even as Apple tries to figure out messaging, it must navigate a tariff situation that is changing by the day. Today, the U.S. and China announced a 90-day pause on the heaviest tariffs, reducing the staggering 145% tariffs on Chinese imports to a still high, but much lower 30%. After 90 days, we could have a new deal that’s even lower – or those high tariffs could snap back into place. At times, smartphones have seen exemptions from some but not all of the tariffs, but whether that would continue is unclear.

Why it matters: Public affairs and communicating with the government is always an important part of any large business’ strategy. But Trump has proven himself to be especially sensitive to criticism and prone to reward his friends – or punish his enemies. Amazon showed that even potential ideas that could reflect poorly on Trump’s strategies can face swift reprisals. At the same time, those who publicly support or privately court the president may see tariff carve outs.

At the same time, customers want explanations for why prices are increasing. Adding a perception of value rather than blaming geopolitical forces can be an effective tool – but there has to actually be value, and it seems that currently, Apple is working to justify a price hike caused by tariffs by hyping up new features that may or may not actually warrant a price increase.

It’s a tightrope walk of a moment, struggling to balance a volatile government with a price-sensitive public. And while this strategy works fine when you’re manufacturing a sophisticated, popular phone, communicators touting grocery goods or pencils can’t hang their hat on new features to explain away price increases caused by tariffs.

Work closely with your lobbying team to create a message that appeases the greatest number of stakeholders – and understand that pleasing everyone just won’t be possible.

Editor’s Top Reads:

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• The Great Resignation, when employees held huge power and were able to command big salaries and cushy perks, is a thing of the past. Now, we’re in an era when bosses are telling employees they’ll get what they get and like it. From JPMorgan Chase’s Jamie Dimon telling workers he didn’t care if they were unhappy about RTO mandates to Uber’s Dara Khosrowshahi rollback of perks though he knew that would be “unpopular,” CEOs are increasingly taking a tough tone with workers. Perhaps emboldened by the increase in AI work, these leaders are betting that they can get more from workers while also offering less. It is, as Khosrowshahi noted, a risk to take these stances. Some employees, including good ones, may leave. Job seekers may look elsewhere for less pressure and better compensation. They generate negative headlines that are amplified on social media. But at the same time, investors seem to like what they’re hearing: Uber’s stock price is up 14% in the last month and Chase has popped 11%. Will those gains be sustainable – and will their employer brands recover if there’s another swing toward workers in the world economy?

Allison Carter is editorial director of PR Daily and Ragan.com. Follow her on LinkedIn.