The primary reason tech giant Apple is likely to give for the price hike is the significant changes in product design and notable new features of the next-generation iPhone lineup.
One of the rumored new features of the iPhone 17 series is an improved camera system with 8K video recording capabilities, a telephoto lens with higher resolution, and an enhanced front camera. Additionally, some models may offer increased RAM, more durable and scratch-resistant screens.
It is also possible that Apple will extend its ProMotion display technology with a high 120Hz refresh rate across the entire iPhone 17 range.
According to The Wall Street Journal, Apple will avoid mentioning tariffs as a reason for the iPhone price increase. However, the US-China trade tensions and the associated taxes on goods produced in China—where most Apple products are assembled—are undoubtedly putting pressure on the company’s production costs.
Apple’s apparent strategy to justify the iPhone 17 price hike by emphasizing new features and designs demonstrates a calculated approach. By highlighting innovation and the added value of the next-generation iPhone, Apple aims to minimize negative consumer reactions related to tariffs or other trade policy issues.
Alleged design of the four iPhone 17 models. Image: Sonny Dickson
According to Apple’s CEO, Tim Cook, the tariffs could cost Apple around $900 million this quarter, with potentially higher costs in the next.
As a result, Apple has been stockpiling inventory since March 2025, before the US government announced new tariffs. They have also shifted production for the US market to India. Earlier this month, Tim Cook announced that most of the iPhones imported to the US in the second quarter of 2025 were assembled in India.
However, for the high-end iPhone models like the Pro and Pro Max, Chinese factories still handle most of the production due to India’s infrastructure and technical capabilities not yet meeting the required scale.
Apple typically unveils new iPhones in September. Barring any changes, this year’s lineup will be named iPhone 17. The Wall Street Journal, however, did not provide details on how much the iPhone prices could increase.
Currently, the iPhone 16 starts at $799, while the iPhone 16 Pro and iPhone 16 Pro Max are priced at $1,000 and $1,200, respectively.
The iPhone 17 series is expected to include an ultra-thin model, tentatively called the iPhone 17 Air, which will replace the iPhone 16 Plus (currently sold for $899 in the US).
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