A new report is now claiming that Apple may raise iPhone 17 prices. Sources are also claiming Apple may use features or design changes in the iPhone 17 phones to explain the price hike, and avoid mentioning the tariffs imposed on China.
Currently, the US and China have announced a temporary pause in their tariff dispute. However, the new pause doesn't affect the 20% smartphone tariff that the US president imposed. Meanwhile, there's an exemption currently on smartphones and other electronic products from the tariff on Chinese goods, and it will temporarily fall to 10% from 125%.
A Wall Street Journal report now claims that Apple has been working on reducing costs with its suppliers. But the limits of this approach seem to have been reached, and now, reportedly, the Cupertino tech giant is considering raising iPhone prices, as the least-bad option, while still keeping itself profitable.
The potential redesign, 3D print. | Image Credit - Majin Bu
The publication cites two unspecified sources reportedly familiar with the supply chain. According to these sources, Apple is careful not to blame the tariffs for any price increase. Earlier, a claim made in April stated Amazon may display the additional costs caused by tariffs.
However, Amazon has since denied that a change like this would be implemented.
At the moment, the publication does not offer what justifications Apple may use to explain a potential price hike. The Cupertino giant may use certain exclusive features of the iPhone 17 models to justify the increase, or maybe the new design (if rumors about the new design are to be believed).
The iPhone 17 models are expected to come in September. Currently, the iPhone prices are as follows:
The lineup in the fall is expected to replace the Plus model with the mysterious super-thin iPhone 17 Air. It is not known at the moment what the price increase may be.
Meanwhile, reportedly, Apple is looking for ways to move some iPhone production to the U.S., but that would take years. Because of the tariffs, Apple's transition to assembly in India may likely accelerate. According to the sources, tariffs on Chinese goods may be higher than those on goods from India and Vietnam.
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Possible iPhone 17 Pro rumored design. | Image credit — Asher Dipprey
The publication's sources also claim that for the high-end models, the iPhone 17 Pro and the iPhone 17 Pro Max, Chinese factories may still handle the bulk of production. The report says Indian factories are able to produce Pro models, but it seems India's infrastructure and technical capabilities aren't sufficient to support mass production at the scale China delivers.
According to an estimate by investment bank Jefferies, approximately 65 million iPhones were sold in the U.S. last year. From those, around 36 to 39 million were Pro or Pro Max models.
At the moment, it seems that it's getting more and more likely that a price increase is going to happen for the iPhone models this year. Possibly, just like the unnamed sources of the WSJ claim, Apple may attribute the price increase to the new design or exclusive features, hoping not to mention the tariffs at all.
Apple has been looking to move iPhone production to India, but for now, it seems that other products by the Cupertino giant, such as iPads and MacBooks, may not get assembled in India just yet. And apparently, Pro-branded iPhones won't be either.
Izzy, a tech enthusiast and a key part of the PhoneArena team, specializes in delivering the latest mobile tech news and finding the best tech deals. Her interests extend to cybersecurity, phone design innovations, and camera capabilities. Outside her professional life, Izzy, a literature master's degree holder, enjoys reading, painting, and learning languages. She's also a personal growth advocate, believing in the power of experience and gratitude. Whether it's walking her Chihuahua or singing her heart out, Izzy embraces life with passion and curiosity.
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