iPhone 17 price hikes — new report claims Apple could charge more this fall
The U.S. and China may have struck a trade agreement over the weekend, but you might still end up paying more for a new iPhone when Apple’s iPhone 17 models debut this fall.
That’s the word from The Wall Street Journal, which reports that Apple is considering whether to charge more for the new phones it has coming out later this year. And if those prices go up, the report continues, Apple is going to look for ways to explain why you’re paying more than you would have for one of Apple’s current phones.
The explanation seems to be tariffs, but Apple will be looking to avoid blaming those publicly. Even with this weekend’s agreement rolling back the retaliatory levies the U.S. and China have slapped upon each other, a 20% tariff on goods imported from China that includes smartphones remains in place.
Why will iPhone 17 prices go up?
That poses a challenge for Apple. The company has shifted some production to countries like India that aren’t facing the same tariffs imposed on China — in its most recent earnings report, CEO Tim Cook said that the majority of iPhones sold in the June quarter will be coming from India.
But the WSJ notes that most of Apple’s Pro models still come from China. And those are the best-selling models in Apple’s lineup.
In that same earnings call, Cook said that Apple anticipates absorbing $900 million in additional costs during the current quarter related to tariffs, but didn’t provide guidance beyond that.
Still, if tariffs do wind up raising the cost of iPhones in the fall, the Journal says Apple will look for a public-facing explanation that doesn’t involve tariffs.
The reason, the Journal says, is that Apple worries about running afoul of the Trump administration should it tie higher prices to the president’s policies. The article cites the blowback Amazon received last month after a report claimed that the retailer planned to list price increases caused from higher tariffs.
How Apple would account for any potential price increases is unclear, though it seems the most likely explanation is attributing it to new features. The iPhone 17 is likely to feature an upgraded display with a faster refresh rate, while the iPhone 17 Pro models are tipped to get upgraded cameras, particularly the telephoto lens.
Then there’s the prospect of the iPhone 17 Air, a new ultra-thin model that’s in line to replace the $899 iPhone 16 Plus as part of Apple’s lineup. While some rumors have suggested a similar price to the Plus, it’s possible the Air could cost significantly more, bumping up the prices of the Pro models as a result.
iPhone prices overview
Current iPhone prices start at $799 for the iPhone 16, with the iPhone 16 Pro costing $999. The iPhone 16 Pro Max tops Apple’s lineup with a $1,199 starting price.
Earlier this year, Apple introduced a $599 iPhone 16e that offers the same Apple Intelligence features as the pricier flagship models. It’s worth noting that model costs $179 more than the iPhone SE that it replaced.
The Journal’s report seems likely to spark more discussion about whether it makes sense for people in the market for a new phone to buy one of Apple’s current models or run the risk of paying higher prices for newer features.
When I analyzed the question about whether to upgrade your iPhone now a little while ago, my advice was to look at the promised iPhone 17 features and see if you consider them must-have additions. =
I’d also advise that you take a good look at your budget to see how big a price increase you’d be able to shoulder should the cost of the iPhone 17 go up.
We’ve got some time before the rubber meets the road on iPhone 17 pricing. The iPhone 17 release date isn’t expected to arrive until September, giving us plenty time for more rumors — including ones that involve pricing — to surface.
