Highlights
- Apple may raise iPhone 17 prices but won’t officially attribute the increase to U.S. tariffs on Chinese goods.
- Instead, Apple plans to highlight new features and design changes to justify the higher cost.
- Tariffs are impacting Apple’s costs with CEO Tim Cook noting a potential $900 million impact this quarter.
Caption – Report hints that Apple might be looking at a price hike for the next iPhone lineup. (Image credit – Apple)
Apple is expected to launch the iPhone 17 series around September this year. While there were rumours of a shakeup in the launch timeline, that’s not happening just yet. However, what might change instead is the price. Yes, it looks like Apple could be gearing up to raise prices across the iPhone 17 lineup.
During the company’s recent earnings call, CEO Tim Cook said that the impact of tariffs could cost Apple about $900 million this quarter. But when asked if that means higher iPhone 17 prices, he chose not to comment.
Now, a new report from The Wall Street Journal says Apple is looking at a price increase for its next iPhone lineup, which means the upcoming iPhone 17 models. Interestingly, Apple reportedly doesn’t want to link the price hike to U.S. tariffs on Chinese goods, even though those tariffs are a major factor. Instead, the company seems to be counting on new features and design changes to make the higher prices seem worth it.
The report explains, “Apple is weighing price increases for its fall iPhone lineup, a step it is seeking to couple with new features and design changes, according to people familiar with the matter […] The people familiar with the supply chain said Apple would have trouble making up for China tariff costs solely by seeking further savings from its suppliers, meaning a hit to its profit margin was likely unless it could raise prices.”
On Apple not revealing the real reason behind the price hike, the report reads, “The company 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, the people said.”
The 20% tariff on all Chinese goods introduced by the Trump administration is still in effect. This is separate from another set of tariffs that recently shot up to as high as 125% but were temporarily reduced to 10%. That said, smartphones were never included in those extra tariffs.
Apple, like many other companies, has been trying to move its manufacturing out of China to reduce its exposure to these tariffs. India is one of the next big bets for Apple’s production needs, but its infrastructure and tech capabilities aren’t yet ready to handle large-scale iPhone production. So for now, China will continue making the most of the high-end Pro and Pro Max models.
Meanwhile, Android Authority points out that if Apple raises iPhone 17 prices, Android phone makers might follow suit. With their own rising production costs and tariff challenges, Android brands could use Apple’s price move as an opportunity to bump up their own prices while staying competitive. This could lead to a general increase in smartphone prices overall, as most brands are unlikely to absorb all these extra costs themselves.
In short, if Apple raises prices, expect others to follow and that’s not great news for smartphone buyers.
FAQs
Q1. Will Apple raise iPhone 17 prices?
Answer. Apple is reportedly considering a price increase for the iPhone 17 series, but it does not want to link the hike to U.S. tariffs on Chinese goods. Instead, the company is expected to highlight new features and design changes to justify the higher cost.
Q2. How are U.S. tariffs affecting Apple costs?
Answer. The impact of tariffs could cost Apple about $900 million this quarter. Apple has struggled to offset these costs through supplier savings, making a price hike more likely. The company is also working to move its manufacturing out of China, but for now, China remains its primary production hub for high-end models.
Q3. Could other smartphone brands raise prices too with iPhone prices?
Answer. Yes. If Apple increases iPhone 17 prices, Android phone makers may follow suit. Rising production costs and tariff challenges could push them to adjust their own pricing, leading to an overall increase in smartphone prices.
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