Apple is quietly preparing to potentially raise iPhone prices this fall. The company's delicate dance around economic pressures reveals a sophisticated approach to maintaining profitability while navigating complex geopolitical challenges that could impact consumer wallets.
According to people familiar with Apple's internal discussions, as reported by The Wall Street Journal, the iPhone-maker is contemplating price increases for its upcoming iPhone 17 lineup. Critically, Apple is meticulously planning to justify these increases through design innovations and new features, carefully avoiding any direct reference to trade tariffs.
How Trump’s tariffs are affecting the iPhone manufacturing and pricing
The current economic backdrop is complex. While the US and China recently agreed to suspend most tariffs, a 20% levy imposed by the US President Trump on Chinese goods remains in place, specifically covering smartphones. Apple CEO Tim Cook has been strategically preparing for such challenges, building inventory and diversifying production by shifting manufacturing to India.
Interestingly, despite India's growing role in iPhone production, currently accounting for 13-14% of global shipments, Chinese factories will continue to handle production of high-end Pro and Pro Max models. The investment bank Jefferies estimates that approximately 36 to 39 million of the 65 million iPhones sold in the US last year were these premium models.
Apple's pricing calculus is delicate. The company recognizes that absorbing additional costs through supplier negotiations is increasingly challenging. The current iPhone lineup ranges from the base iPhone 16 model at $799 to the iPhone 16 Pro Max at $1,199, with potential increases on the horizon.
While the report suggests a price increase is incoming for the newer models, there is no word on what exactly would the iPhone 17 models would. However, we can expect a higher price tag for the ‘slim’ iPhone 17 model that is expected to the $899 iPhone 16 Plus.
Consumers might soon face slightly higher price tags, not because of tariffs, but through Apple's carefully orchestrated product evolution.
According to people familiar with Apple's internal discussions, as reported by The Wall Street Journal, the iPhone-maker is contemplating price increases for its upcoming iPhone 17 lineup. Critically, Apple is meticulously planning to justify these increases through design innovations and new features, carefully avoiding any direct reference to trade tariffs.
How Trump’s tariffs are affecting the iPhone manufacturing and pricing
The current economic backdrop is complex. While the US and China recently agreed to suspend most tariffs, a 20% levy imposed by the US President Trump on Chinese goods remains in place, specifically covering smartphones. Apple CEO Tim Cook has been strategically preparing for such challenges, building inventory and diversifying production by shifting manufacturing to India.
Interestingly, despite India's growing role in iPhone production, currently accounting for 13-14% of global shipments, Chinese factories will continue to handle production of high-end Pro and Pro Max models. The investment bank Jefferies estimates that approximately 36 to 39 million of the 65 million iPhones sold in the US last year were these premium models.
Apple's pricing calculus is delicate. The company recognizes that absorbing additional costs through supplier negotiations is increasingly challenging. The current iPhone lineup ranges from the base iPhone 16 model at $799 to the iPhone 16 Pro Max at $1,199, with potential increases on the horizon.
While the report suggests a price increase is incoming for the newer models, there is no word on what exactly would the iPhone 17 models would. However, we can expect a higher price tag for the ‘slim’ iPhone 17 model that is expected to the $899 iPhone 16 Plus.
Consumers might soon face slightly higher price tags, not because of tariffs, but through Apple's carefully orchestrated product evolution.
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