Apple Contemplates iPhone Price Increase, Pegs it on New Design, Features

Apple could hike the price of its upcoming iPhone lineup, Reuters reported. As it contemplates the iPhone price increase, the Wall Street Journal reported that the US big tech is keen on delinking the hike to US tariffs on Chinese imports.

Cushioning Costs

Raising iPhone prices may enable the tech giant to cushion rising production costs resulting from import tariffs. New tariffs have disrupted global supply chains and pushed the tech giant to set up an Apple assembly plant in India as it seeks to shift production from China. Most of the devices that Apple sells in the US market, including Macs, iPads, and Apple watches are assembled in Vietnam.

Sources close to the company say the price increase will be paired with iPhone 16 design changes like an ultrathin look and new features in the next model, which will most likely be the iPhone 17 series. The new iPhone series may come with a camera panel integrated at the back to give it a seamless appearance. iPhone 17 Pro and Pro Max models are expected to feature Apple’s next-gen A19 Pro chipset made using the advanced 3nm process.

Last month, US President Donald Trump exempted smartphones from tariffs. However, Apple devices are still subjected to a 20% import duty. On May 12, the US and China agreed to pause tariffs on products imported between now and early August. Under the new deal, Chinese imports will attract a 30% duty in the US.

Apple will not be launching its new iPhone series until September. The company has been producing most of its devices in China. Apple is among the leading US big techs that is heavily affected by the US-China trade war. Tensions between the two countries have escalated in recent weeks after President Trump introduced a series of tariffs against China.

Analysts’ Take

For several months now, analysts have speculated about Apple’s move to hike iPhone prices. Some have cautioned against the move, arguing that it could cause the big tech to lose its market share to rivals like Samsung. Customers are increasingly opting for Samsung smartphones due to the AI features they offer since Apple opted for a slow Apple Intelligence rollout.

It’s still not clear how much Apple will add to its iPhone products if it pulls through with the iPhone 16 price increase. In the US, the lowest price tag on an iPhone 16 model was $799. Previously, the company has been increasing prices by $100. Going by this trend, the price of the cheapest iPhone 17 series model could reach $900 during the launch.

But analysts project that the price could be much higher. Last month analysts from Rosenblatt Securities projected that the price could rise by 43% to hit the $1,142 market due to tariffs. The last time Apple raised prices for standard models was back in 2020 when iPhone 12 sold for $799. Its iPhone 15 series could come with a $100 to $200 price hike.

Future Plans

According to the Wall Street Journal, Apple is keen on preventing political conflict with the White House. Recently, Amazon found itself in crosshairs with the Trump administration after it emerged that the company planned to inform customers of its low-cost Amazon Haul about price increases caused by US tariffs. The White House termed the move a hostile political act.

Different outlets have reported that Apple plans to launch its ultrathin iPhone by the end of the year. Reports also show that the iPhone has more ambitious plans in the coming year. According to Bloomberg, there is a likelihood that 2027 will be the year that the company drops a cutout on iPhone products.

Apple plans to unveil a mostly curved, glass smartphone without cutouts as it celebrates iPhone’s 20th anniversary. Considering that the big tech commenced its redesign efforts in 2017 with the iPhone x, this launch will be worthwhile.