Apple is going to raise iPhone prices this fall, and you won’t like it. Every model in the upcoming iPhone 17 lineup will cost more than what you’re used to.
The company isn’t shouting about it yet, but it’s happening, and it’s happening because of tariffs, not because you’re getting anything mind-blowing in return.
The new phones will have a slimmer build and maybe a few cosmetic tweaks, but the bigger story is about keeping profits up while the US and China trade war drags on.
According to reporting from The Wall Street Journal, Apple has decided the only way to deal with rising costs from Trump’s trade policies is to make people pay more. But the iPhone maker is terrified of saying that out loud.
After Trump slapped a 20% tariff on Chinese goods over fentanyl-related accusations, smartphones got caught in the net. Even though most other tariffs were paused this week, that one still stands. And because most iPhones are made in China, it hits hard.
Apple plays defense while raising prices
Donald Trump did leave a back door. He exempted smartphones from a separate “reciprocal” tariff, which under a new deal will drop from 125% to 10%. That sounds nice, but it doesn’t apply to the fentanyl-linked tariff. That one’s still alive and crushing Apple’s China-based assembly lines.
So now, the company is stuck. It can’t afford to eat the cost, but it also can’t afford to admit the real reason prices are rising.
Back in April, a report said Amazon might start telling customers how much tariffs were inflating product prices. That didn’t go over well. The White House went after them immediately. Amazon walked it back fast, saying the plan “was never approved and is not going to happen.” Tim Cook and his crew saw that and decided to keep their mouths shut.
Instead, they’re going with a familiar move: act like the higher prices are just about better features. But the truth is, even Cook doesn’t know what those features will be.
There’s talk of a thinner model replacing the current iPhone 16 Plus, which sells for $899 in the US. The base iPhone 16 goes for $799, and the iPhone 16 Pro Max starts at $1,199. Whatever Apple drops this fall will push those numbers higher.
India ramps up, but China still builds the best
To protect Apple’s supply line, Tim started shifting iPhone manufacturing for the US market to India. He even stocked up inventory in March, trying to stay ahead of the tariff punch. Earlier this month, Tim said the majority of iPhones shipped to the US between April and June would be made in India. But it’s still limited.
High-end models—especially the Pro and Pro Max—still come from China. Indian factories aren’t ready for that kind of volume yet. They lack the infrastructure to mass-produce phones with larger batteries and advanced camera systems. Cook can move some things, but not everything.
Apple sold about 65 million iPhones in the US last year. Jefferies estimates that 36 to 39 million of those were Pro or Pro Max models. That’s a big chunk. And Apple’s internal team knows they can’t cover those volumes with Indian manufacturing right now.
The company also can’t just squeeze more out of suppliers to balance the cost. There’s no extra fat to cut. That means one thing: either let profit margins drop or raise prices. And we already know which one Apple chose.
Tim’s also looking at a longer-term plan to bring some iPhone production to the US, but that’s going to take years. For now, he’s speeding up the India plan. Industry planners expect India and Vietnam to have lower tariffs than China moving forward. That’s why Apple is leaning into both countries.
India handled 13% to 14% of global iPhone shipments last year. This year, that number is supposed to double. But even then, it’s not enough. Apple can’t meet demand in the US and India at the same time. Others are way less optimistic.
Jefferies analysts said it would be a “tall order” for Apple to get India up to 40 million units of high-end iPhones in two years. That includes what they’d need to sell in both markets. It’s doable, but not likely in that time frame.
Your crypto news deserves attention – KEY Difference Wire puts you on 250+ top sites
This articles is written by : Nermeen Nabil Khear Abdelmalak
All rights reserved to : USAGOLDMIES . www.usagoldmines.com
You can Enjoy surfing our website categories and read more content in many fields you may like .
Why USAGoldMines ?
USAGoldMines is a comprehensive website offering the latest in financial, crypto, and technical news. With specialized sections for each category, it provides readers with up-to-date market insights, investment trends, and technological advancements, making it a valuable resource for investors and enthusiasts in the fast-paced financial world.
