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WSJ: Apple Weighing Price Hikes for iPhone 17 Lineup Without Blaming Tariffs
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This is happening a lot. Microsoft has raised the price of the Xbox globally, for example.
There's probably two reasons for this. The first is the obvious one; spreading the cost of tariffs across consumers in other countries rather than having monster price increases in the U.S. But the second is likely consumer value. Some people are suggesting that there's a political motivation to not "blame Tariffs" and upset the administration; and while I'm sure that's some of it, I personally think it's broader. It's more about wanting to avoid consumers deciding not to purchase something because a Tariff is just wasted money thrown at a product; and the long-term Tariff rates are still unknown. This stuff is changing by the day.
If they can spread the cost to other countries not only do they reduce the price increase, but they further 'sell' the idea to consumers that the product is just better and warrants a higher price.
Consumers are a strange species. In the early 2000's at the height of subsidized phones, Cingular (now AT&T) found that charging 99 cents for a phone drove up sales; compared to making the phone free. Apparently consumers just felt that a $1 cell phone was a great value, but a 'free' phone was just junk. I wouldn't be shocked if the big wigs at these companies don't feel that consumers will look at the price being the same here as it is elsewhere; and assuming that means it's still a good deal.
And given the utter density of some of my countrymen; I wouldn't be shocked if they used that as evidence that the tariffs aren't affecting the products they want to buy.
Is the well-informed and perceptive American public in the room with us right now?
The tariffs do have an effect but I believe that many companies (including Apple) wanted to raise their prices even before the tariffs.
The companies now have a good excuse.
The companies now have a good excuse.
You do realise that the likely purpose of the price hike is to blunt the impact of tariffs on the price of iPhones sold in the US, right? 😛
Go ahead and raise it. They will still come in mass without blinking or thinking twice. $100-$300 increase will be fine.
Sounds like they might not be able to use tariffs as an excuse to raise prices(mostly because they might not be there anymore) so they are going to have the marketing team come up with a new one. Smart idea to stay in front of the excuse rather than blame it on the tariffs first only to have that one evaporate and them not be able to explain it away.
You cannot compare. Sony and Microsoft consoles sell at a $100-135 loss, per unit sold. Apple runs a hefty profit, particularly on the “pro” models. Have manufacturing costs gone up since the last price hike? Yes, enough to untidy more than a $25 price hike? No.
They are unwilling to eat the cost to their profit and look for a way to increase those margins even further, especially with phones being mature and consumers holding onto them longer.
It could really backfire if people stop buying iPhones altogether.
Just enough so your previous case no longer fits and you can throw it in the garbage. Also, we care about the environment.
also a European here, if the prices on the iphone 17 lineup get considerably higher, I'm stepping back from my two year cycle or, if protocols like airdrop and airplay 2 are implemented into android competition, look for other options for my phone. Not on my macbook though.
I’m so confused with the tariffs, I thought The Trump administration has exempted smartphones? Can someone kindly explain 😂
As somebody said before on here - you can envisage Tim looking to camera and saying "I couldn't be more excited to introduce you to our newest price increases - we think you're going to love them!"
If Apple plans to shoot their feet in other markets that is one way. Competitors will love that.
Do you think that will go silently?
Cy.
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Voting with my wallet this year....by not buying it lmao. Might actually downgrade or jump ship to the lil green guy
Everything getting more expensive is a great excuse to increase prices, no matter if it's necessary or not. It happened a lot during the 2022 inflation and it will happen again this time.
But it's up to the consumers if they get away with it. And people love their phones, so I bet they will save elsewhere.
But it's up to the consumers if they get away with it. And people love their phones, so I bet they will save elsewhere.
If the iPhones get a price hike outside of the US I will probably transition away from Apple.
I’ve already been considering trying out Samsung. I’ve been using an iPhone since the 3GS. But I think it might be good to try something different now. It’s been 15 years since I had an android device I’ve used daily.
I’ve already been considering trying out Samsung. I’ve been using an iPhone since the 3GS. But I think it might be good to try something different now. It’s been 15 years since I had an android device I’ve used daily.
If true, then I called it earlier during the report about Apple temporarily absorbing the tariffs.
The bean counters at Apple are never going to let the cushy margins go.
The bean counters at Apple are never going to let the cushy margins go.
its literally back to aluminum… so I would be paying for far less material than before if this is the case. 2) it’s an added rectangle for the camera on the back and faster. That’s it …