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With Apple paying tariffs on imports from many of the countries where it sources devices and device components, there have been multiple rumors about possible price increases for the iPhone 17 models.

iPhone-17-Pro-Dark-Blue-and-Orange.jpg

The tariff situation has been in flux for most of the year, leading to a lot of uncertainty. We've rounded up the pricing rumors we've heard so far, and provided context on the latest tariff situation.

Pricing Rumors

Most speculation about a potential price increase is outdated at this point, or analysts have shied away from providing specific numbers. The most concrete recent rumor we've seen is the July Jefferies prediction suggesting a $50 increase across the lineup.

Reciprocal Tariff Changes and Exemptions

When high reciprocal tariffs were first announced against countries like China, India, Vietnam, and Malaysia in April, there were fears that Apple could be hit with huge fees. Tariffs were pushed back, negotiated, and Apple CEO Tim Cook was at work behind the scenes negotiating, and at this point, Apple is going to be subject to minimal tariffs.

Shortly after the tariffs were announced, the Trump administration exempted a long list of products from being subject to tariffs, and that list included almost all of Apple's devices. The iPhone, iPad, Mac, Apple Watch, and other Apple devices are exempt from reciprocal tariffs, which were the highest tariffs that were put in place.

The upcoming 50 percent tariff on imported goods from India is a reciprocal tariff, which Apple does not have to pay at the current time. Apple also does not pay the current 25 percent fee. The high reciprocal tariffs on China are paused again, but Apple wouldn't need to pay that anyway.

When semiconductors and related products were exempted from reciprocal tariffs in April, Trump promised that there was a semiconductor-specific tariff in the works that could be applicable to Apple.

Earlier this month, Trump claimed there would be a 100 percent tariff on chips and semiconductors imported into the United States, but he said that companies that are building in the United States or that have committed to building in the U.S. will not have to pay those tariffs.

Apple has pledged to spend $600 billion on U.S. manufacturing, and won't have to pay that semiconductor tariff. That tariff isn't in place yet, and the terms are unknown, so it's still just talk at this point.

What Apple's Actually Paying

While Apple is exempt from the reciprocal tariff fees on semiconductors and related devices, it does have to pay other tariffs that are in place. That includes the 20 percent "Fentanyl Tariff" on goods imported from China that Trump enacted earlier this year, and tariffs on products that are not exempt.

During Apple's July earnings call, Apple CEO Tim Cook said that Apple paid $800 million in tariff related costs in the June quarter, and that it is expecting $1.1 billion in tariff costs in the September quarter. That estimate assumes the current tariff situation remains unchanged and no additional tariffs are added.

So Will Prices Go Up?

In Q4 2024, iPhone revenue was $46 billion. If we use that number and the $1.1 billion estimate from Apple, tariffs would eat up around 2.4 percent of iPhone revenue. Apple could make that up by increasing costs around $20 per iPhone. Increasing costs of one model by $50 (as rumored for the iPhone 17 Pro) could also help offset the cost without Apple having to raise prices on all devices.

The $1.1 billion is not only applicable to the iPhone and applies to all products, so the iPhone-specific impact would be lower.

Of course, that assumes the tariffs are not changing, and it also doesn't take into account any potential component cost increases. Apple's exemption from some tariffs does not mean that the company's suppliers aren't seeing an effect from tariffs and other related pressures.

Apple hasn't raised the $799 price of the base iPhone model for the last five years, so price increases on some models while keeping the base price intact seems like a possibility.

Apple also has a wild card slot with the iPhone 17 Air, because it's an all-new device and we don't have an existing model to compare it to. Right now, rumors suggest it'll be $899, which is the same starting price as the iPhone 16 Plus.

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: Will the iPhone 17 Cost More? All the Rumors About a Price Increase
 
I thought because Apple is investing in US factories, they are getting a pass on the iPhone
 
Those renders have to be a smokescreen to weed out leakers. They're hideous...but will pair well with the equally hideous Apple Watch Ultra design language.
Well the design definitely won’t appeal to everyone, however the AW Ultra still sells very well & makes Apple a decent profit… 💸
 
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Now if we could just expand that camera bump to the full back of the phone...
Oh, wait, then we'd have a phone with a smooth back (like early iPhones) that lays flat on a desk or table, and with more space for battery! We can't have form defined by function! We need half thin/half thick!
 
Yes.

I believe part of the iPhone 17 series will be a bit more expensive—around $50 to $100 more for the Pro and Pro Max models, while the standard 17 will stay the same.

Navigating daily changes in tariffs (such as the delay on Chinese tariffs announced yesterday) will cause investors to be concerned about profits of AAPL, and they will do what they need to do to keep that margin.

I'll be buying the Pro if it doesn't increase by more than $100. My 16 is feeling old.
 
Any thoughts about what happens to the iphone 16 generation after iphone 17 release, but with a price increase? ;-)
 
Now if we could just expand that camera bump to the full back of the phone...
Oh, wait, then we'd have a phone with a smooth back (like early iPhones) that lays flat on a desk or table, and with more space for battery! We can't have form defined by function! We need half thin/half thick!
Most people use a case and their phones don’t ”wabble”. It’s silly to be obsessing over such small stuff. It’s not like it’s hurting Apple’s sales. Making the case really thick would hurt sales, and creating a camera flush with the body would ruin all the progress Apple has made in photography over the years & those things would hurt Apple’s sales.
 
Stop calling them reciprocal. They are basically calculated by taking a countries physical goods trade deficit as a percentage and dividing it in half to come up with the rates.

Many of these countries had zero tariffs on US goods.

In many cases when you add in all commerce Digital, Services etc the US had a surplus.
 
Of course they will cost more, probably $50. However Apple may spread the cost increase worldwide, and it’s not like other companies won’t follow. But maybe Apple will be good and just raise prices in the USA. I guess we’ll all find out next month. 😉
 
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I can never understand why people who are buying phones that cost thousands of dollars a whine about possible increases of $50-$100. If you can't afford it, don't buy it. Go and buy a cheap data-sucking Android phone. If you want the best, pay for it. And if you voted for Trump, it's your fault anyway.
 
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