Tech titan 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, reports the Wall Street Journal. Interestingly, the company is said to be deliberately avoiding any mention of US tariffs on Chinese imports as a reason for the increase.
As per the report, with such strategic communication, the iPhone maker is trying to avoid potential political backlash and consumer discontent associated with tariff-related price increases.
The upcoming iPhones are expected to showcase notable 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.
The timing of the move becomes noteworthy 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 Cupertino-headquartered 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.
