You’ve lost sight of the ball when you attempt to “justify” a high price. What should determine a price increase? The bill of materials. If a hardware feature is cutting-edge, the price will naturally rise. In this case, there’s only one person to blame—or praise, depending on your perspective.
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WSJ: Apple Weighing Price Hikes for iPhone 17 Lineup Without Blaming Tariffs
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If Apple raises the price, they should remove the 128GB option and make 256GB the standard.
If Apple increases prices outside the US, it will be a PR nightmare.
I already did read stories from media in which this potential global price hike is clearly attributed to Trumps tariffs.
Given that basically every single person outside the US hates the orange, no one will understand why they should pay the price for someone who was voted in the office by the US Americans.
I have been on the iPhone since the first one, since it was not even available in Europe, so I did import it. Usually every 2 years, sometimes yearly upgrades. If they raise the prices they can be sure I won't upgrade but switch to a last year model cycle and generally reconsider how many apple products I want to own.
And given that the US dollar is weaker compared to the Euro since Trump, they will have a very hard time to sell higher-priced phones. Europeans are a lot better informed than the normal US American. They want buy the story that its not the Trump tariffs and then they will ask, why should I pay for that?
I already did read stories from media in which this potential global price hike is clearly attributed to Trumps tariffs.
Given that basically every single person outside the US hates the orange, no one will understand why they should pay the price for someone who was voted in the office by the US Americans.
I have been on the iPhone since the first one, since it was not even available in Europe, so I did import it. Usually every 2 years, sometimes yearly upgrades. If they raise the prices they can be sure I won't upgrade but switch to a last year model cycle and generally reconsider how many apple products I want to own.
And given that the US dollar is weaker compared to the Euro since Trump, they will have a very hard time to sell higher-priced phones. Europeans are a lot better informed than the normal US American. They want buy the story that its not the Trump tariffs and then they will ask, why should I pay for that?
You obviously don't have a business mind.
The bill of materials does NOT determine the price of an object. The demand does.
A 12" stuffed animal costs about $4 to make. The new Stitch movie is coming out, so a Stitch stuffed animal will go for $30, while a generic dog will go for $10. Same materials in both.
The White House release states these are "ad valorem" tariffs. I originally thought that maybe that term meant they were Harry Potter tariffs, which explained them magically changing constantly, but then I looked it up and it appears that this actually means they are applied on the estimated value of the items, not the cost of build.
So even if Apple somehow managed to manufacture an iPhone for only $200, that 20% tariff would more likely be 20% of the $799 "value", so around $160. I think someone said that the remaining tariffs are 10% plus the 20% Fentanyl tariff, so I guess that would make it 30%, or $240 extra for a base iPhone.
But, yes, most people don't seem to understand tariffs.
If I upgrade this year it will be to a Samsung S25 Ultra, iPhones now have have more competition and I no longer like the look of the new iPhone, my iPad and Mac are fine, phone wise I want a better experience and the Ultra looks good and with rumours of them dropping back to Exynos in Europe next year that may be the phone to go with a S25 this year with the X85 modem.