iPhone 17 : Likely to launch with higher prices

Apple has not changed iPhone prices since  launch of the iPhone 12 way back in 2020. But it might change soon. A report suggests that the company is reportedly planning to increase the price of its upcoming iPhone 17 series, which is expected to launch in September this year.

Tech giant Apple is reportedly planning to raise prices for its upcoming iPhone 17 lineup. The new models are expected to launch later this year. These price hikes are due to advanced features and design upgrades, reported by the Wall Street Journal. Interestingly, the company is said to be intentionally avoiding any mention of US tariffs on Chinese imports as a reason for the increase.

The upcoming iPhones are expected to showcase big technological advancements, including the integration of ‘Apple Intelligence’ – a suite of artificial intelligence (AI) tools designed to enhance user experience. Additionally, design innovations like thinner profiles and potentially foldable models are also anticipated. And now the company is reportedly using these enhancements as a reason to justify the higher price points without attributing them to external economic factors.

iPhone 17 series could be costlier

• A new report by The Wall Street Journal says that the company is considering increasing the prices of its iPhone models with the launch of the iPhone 17 series this year.
• The company reportedly aims to attribute this price hike to the updated design and new features instead of linking it to the tariff that the US government has imposed on the imports from China.
• The US and China have agreed to a 90-day pause on tariffs. Even so, goods imported from China are subjected to a combined tariff of 30 percent, which includes a 20 percent tariff in smartphones imported from China and a 10 percent reciprocal tariff announced earlier this year.
• Sources familiar with the matter told the publication that the company fears public and political backlash, especially after reports suggested that Amazon may display impact of tariff to the buyers.

“CIRCUMSTANCES HAVE LED APPLE TO LOOK AT WHAT SUPPLY-CHAIN INSIDERS DESCRIBED AS THE LEAST-BAD CHOICE: RAISING PRICES ON THE NEW IPHONES TO PRESERVE PROFIT AND FINDING REASONS OTHER THAN TARIFFS TO EXPLAIN THE MOVE,” THE PUBLICATION WROTE.

• However, the decision is yet to be finalised and at this point, it remains unclear how much price hike Apple will settle on.

The timing of this move becomes notable since on Monday (May 12), the US and China agreed to temporarily halt the imposition of new tariffs on each other’s products for 90 days to allow more time for trade talks. As part of the agreement, the United States committed to reducing its tariffs on most Chinese imports from a combined 145% to 30% by May 14. In exchange, China agreed to lower its own tariffs on US goods from 125% to 10%.

At the same time, the Trump administration announced major tariff exemptions for certain tech products, like smartphones, laptops, hard drives, and machines used in semiconductor manufacturing. However, a previously imposed 20% tariff on a wide range of Chinese goods will still remain in effect.

Earlier this month, while presenting the Q2 2025 revenue report, CEO Tim Cook addressed the uncertainty surrounding global trade tensions, particularly the impact of tariffs. He stated that the company has estimated an additional $900 million in expenses for the current quarter alone.

In response to these challenges, the company has been diversifying its manufacturing footprint. The company is increasing its production presence in India, aiming to shift a significant portion of iPhone manufacturing there by 2026. However, India’s current manufacturing capabilities are not yet sufficient to handle the production of high-end models, necessitating continued reliance on Chinese facilities for these devices. Actually, the company’s high-end models like the iPhone Pro and Pro Max are still mostly assembled in China. These models accounted for almost 55% of total iPhone sales in the US last year.

Meanwhile, experts believe that the potential price hikes (which could be as high as 43% for certain models) might impact consumer demand and market competitiveness. For example, a base model iPhone currently priced at $799 could rise to about $1,100, while the high-end iPhone Pro Max could approach a price point of $2,000.

It is worth telling that this comes at a time when reports have hinted towards Apple working on ramping up its iPhone production capabilities in India to fulfil the demands of the US market amid the US-China trade tensions. Foxconn, which manufactured 12 million iPhone units in India in 2024, is likely to up the number to around 30 million in 2025, a separate report by The Economic Times noted.

Apple CEO Tim Cook has also confirmed that majority of the iPhones sold in the US in the June quarter will come from India.

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