High cost potential for the upcoming iPhone 17, making it Apple's priciest model to date.
The upcoming iPhone 17 lineup is expected to come with a price increase, as reported by various analysts. The most consistently projected figure is a $50 increase across all models, including the iPhone 17, iPhone 17 Air, iPhone 17 Pro, and Pro Max.
According to Jefferies analyst Edison Lee, this price hike is necessary to offset tariffs and rising component costs. The tariffs, primarily on goods manufactured in China and India, could result in incremental cost pressures of up to $100 on iPhone 17 prices compared to the iPhone 16 models.
Apple is justifying these increases by enhancing the base storage of its Pro models and adding new features. For instance, the base storage for the Pro model might rise from 128GB to 256GB, providing a perceived value and accounting for "feature inflation."
While the standard base model might maintain its price for competitiveness, the Pro and Pro Max tiers are expected to see the brunt of the price increase. This would mark the first significant price increase since the iPhone X in 2017.
The iPhone 16 Pro Max currently retails at $1,199. If import costs are high, the base iPhone 17, rumoured at $799, could exceed $1,000.
Other cost factors include the camera upgrade, which could add $20 to the production cost, and engineering the iPhone 17 Air to prevent overheating and extend battery life, which could add $25-$40 to the production cost.
Apple is negotiating price cuts with suppliers like LG Display, which could potentially save $57 per Pro Max. However, these potential savings may not be realized in time for the iPhone 17, potentially benefiting the iPhone 18 instead.
To avoid tariffs, Apple is ramping up assembly in India. However, the timing is awkward due to tariffs, making the situation complex.
Analysts predict the iPhone 17 Pro to cost between $1,500 and $1,600 in the U.S., with the Pro Max priced around $2,300. In India, the Pro Max could cost ₹1,64,990 (approximately $1,970).
Rumours suggest the iPhone 17 lineup will include a 48MP telephoto camera, 8K video, 12GB of RAM, and an iPhone 17 Air that is 5.5mm thick.
It's important to note that Apple does not plan on raising prices arbitrarily. Tim Cook, Apple's CEO, stated that a tariff could add $900 million to Apple's costs. If both a tariff and a 20% levy are imposed, the iPhone 17 price could potentially multiply by nearly five.
The potential increase in price might make upgrading to the iPhone 17 a financial challenge for some, with rumours suggesting the pricing could be higher, potentially requiring a loan for some to afford.
Analysts predict a US-made iPhone could cost anywhere between $1,500 and $3,500.
In conclusion, the iPhone 17 lineup is expected to come with a price increase, primarily driven by tariffs, component costs, and the addition of new features. The most consistent projection is a $50 increase, although it could potentially reach up to $100 under some considerations. Apple is taking steps to mitigate these costs, such as negotiating price cuts with suppliers and ramping up assembly in India. However, the final prices will depend on various factors, including tariffs and negotiations with suppliers.
Smartphone enthusiasts may struggle to afford the anticipated price hike for the iPhone 17 lineup, as analysts predict the iPhone 17 Pro could cost between $1,500 and $1,600 in the U.S., while the Pro Max could be priced around $2,300. The escalating costs are largely due to tariffs, rising component costs, and the inclusion of advanced features like a 48MP telephoto camera and 8K video recording.
