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A recent analyst report indicates that Apple plans to raise the prices of three iPhone 17 models compared to the previous iPhone 16 lineup. The report attributes the increase to rising manufacturing and tariff costs, though it notes that the base model will likely retain its starting price of $799.
Speculation has been ongoing about a price hike this year, driven partly by the need to offset U.S. tariffs introduced on Chinese-made products. While tariffs have added approximately 20% to production costs, Apple is attempting to meet U.S. demand with devices assembled in India. Nonetheless, since these alternative production efforts may not fully satisfy overall U.S. market demand, some cost increases are anticipated. Initially, Apple absorbed these additional expenses, incurring a $900 million loss in the second quarter, but reports suggest the company may pass some of these costs onto consumers in upcoming releases.
An analyst from Jefferies, Edison Lee, has projected a $50 increase across the three higher-end models of the iPhone 17, explaining that this adjustment is necessary to cover increased component prices and tariffs. Lee has maintained a hold rating on Apple shares, with a target price of $188.32, and expects the price increment to help offset manufacturing costs.
If the prediction holds, the starting prices for the new iPhone models could be as follows, with the base model likely remaining at its current price point. The potential increase for the premium models reflects Apple’s focus on safeguarding profit margins amid rising costs.
9to5Mac notes that such pricing adjustments are not surprising, given Apple’s intent to protect its profit margins. However, the company’s decision to potentially push the Pro model’s price above the $1,000 mark could have psychological implications for consumers. It remains to be seen how this pricing strategy will influence market perception and sales.
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