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iPhone 17 Models May See $50 Price Hike, Says Jefferies

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Apple is expected to implement a $50 price increase across its iPhone 17 lineup when the new models launch in September as a way to offset rising component costs and China tariffs, according to a new investor note by Jefferies analyst Edison Lee.

iPhone-17-Pro-on-Desk-Centered-1.jpg

The price hike is expected across all iPhone 17 models, including the regular iPhone 17, iPhone 17 Air (replacing the Plus model), iPhone 17 Pro, and iPhone 17 Pro Max. Current iPhone models range from the base iPhone 16 starting at $799 to the iPhone 16 Pro Max at $1,199.

The analyst's prediction came as it gave AAPL stock a Hold rating, citing strong iPhone sales in the second quarter of 2025. U.S. telecommunications companies reported a 22% year-on-year equipment growth, their highest in six quarters, according to the analyst's note.

The Wall Street Journal reported in May that Apple was considering raising prices for its upcoming iPhone 17 models. The company reportedly aims to pair the potential price hikes with new features and design changes to justify the increased cost to consumers, rather than attributing them to U.S. tariffs on goods from China.

Note: Due to the political or social nature of the discussion regarding this topic, the discussion thread is located in our Political News forum. All forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.

Article Link: iPhone 17 Models May See $50 Price Hike, Says Jefferies
 
Article Link
https://www.macrumors.com/2025/07/30/iphone-17-price-increase-expected/
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“The company reportedly aims to pair the potential price hikes with new features and design changes to justify the increased cost to consumers, rather than attributing them to U.S. tariffs on goods from China.”

In other words, this is how they will try to justify price rises to the rest of the world too.
 
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Will be curious about Euro prices. According to exchange rate developments they should actually decrease. I bet they won't and we'll pay the Trump prices, too. In fact, Apple might even increase them for optics, because they are afraid to visibly pass along the tarif costs.
 
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Econ professor here.

Nobody likes paying higher prices for iPhones, but here's another perspective:

The base iPhone has had the same $799 MSRP since the iPhone 12 in 2020. (The iPhone 11 started at $699.)

The iPhone Pro has had the same $999 MSRP since the iPhone 11 Pro in 2019. Before that, there were no phones named "iPhone Pro," but the iPhone X (2017) and iPhone XS (2018) were the "Pro" iPhones of their time, and their MSRP's were $999 each.

During all these years, production costs have risen. And you'll remember that the pandemic disrupted supply chains in 2020-2022, and most other goods with semiconductor chips experienced shortages and/or big price increases.

Thanks to inflation, the $999 we paid for the iPhone 16 Pro last year was a lot cheaper in purchasing power terms than the $999 we paid for the iPhone 11 Pro in 2019.

If Apple raises prices of the iPhone 17 models by $50 each, they will still be cheaper in purchasing power terms than the iPhone 12 through iPhone 15 models.
 
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foobarbaz said:
Will be curious about Euro prices. According to exchange rate developments they should actually decrease. I bet they won't and we'll pay the Trump prices, too. In fact, Apple might even increase them for optics, because they are afraid to visibly pass along the tarif costs.
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It also allows them to spread it around. 15% of $1000 is $150. Around one third of iPhones sold are in America. If they raise prices everywhere by $50, and they maintain the same sales, that covers the tariffs fully. And it’s much easier for consumers to stomach a $50 increase over a $150 one.
 
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No one really likes paying more for things but technology items like iPhones are not immune to inflation and inflationary pressures forever. The flagship iPhone (X = Pro) has not had a price change in the U.S. yet in 7+ years, despite all the worldwide inflation. We can go further back in time. The original iPhone was $500 ($750 in 2025 USD). You can buy an iPhone 16e for less than that, adjusting for inflation, which means there are still relatively less expensive options than the original iPhone if people don't want to buy the flagship device. That's not a bad situation for consumers.

What this means is Apple has effectively lowered prices, which benefits consumers, while maintaining hardware profit margins (always a goal for Apple since it started as a company [i.e., high margins were something Steve Jobs valued), which benefits investors and provided the capital to do things like develop Apple Silicon and more.
 
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foobarbaz said:
Will be curious about Euro prices. According to exchange rate developments they should actually decrease. I bet they won't and we'll pay the Trump prices, too. In fact, Apple might even increase them for optics, because they are afraid to visibly pass along the tarif costs.
Click to expand...
The best way to recoup tariff increases to spread the price increases to all markets so I'm guessing prices will be increasing in many places for the next iPhone.
 
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