A new analyst report suggests that Apple will increase prices for three iPhone 17 models, when compared to iPhone 16 pricing.
The report suggests two reasons for the increase, and indicates that the price of the base model will remain unchanged, with a starting price of $799 …
iPhone 17 prices
It’s been widely speculated that Apple will increase prices for this year’s iPhones, in order to cover the costs of US tariffs imposed on products manufactured in China.
The exact impact on the company’s finances is unknown – while Trump’s tariffs add 20% to Apple’s costs for Chinese-made iPhones, the company is aiming to meet as much US demand as possible with phones made in India. This is unlikely to meet total US launch demand, however, so there will be some cost increase for the company.
Apple initially chose to absorb these extra costs, taking a $900M hit in Q2, but is expected to pass on at least some of the costs to consumers in future.
Analyst says $50 raise for three models
I said back in May that my best guess was a $50 price raise, and an analyst has today echoed this – though suggested that the base model will escape.
Jefferies analyst Edison Lee maintained a Hold rating and $188.32 price target on Apple […] Jefferies expects a $50 price increase for iPhone 17 Slim/P/PM models to offset rising component costs and China tariffs.
If accurate, this year’s starting prices would be:
- iPhone 17: $799
- iPhone 17 Pro: $1,049
- iPhone 17 Pro Max: $1,249
- iPhone 17 Air: Unknown
It’s not known what basic of comparison Jefferies is using for the iPhone 17 Air, as this will be a completely new model, but it likely means the company is adding $50 to the price initially planned.
The report was tweeted by the Walter Bloomberg account. While not associated with Bloomberg, the account usually posts headlines from Bloomberg Terminal before the news hits the paper’s main website.
9to5Mac’s Take
This would not be unexpected. Apple is very protective of its margins, and seemed unlikely to want to continue to absorb the additional costs indefinitely.
However, it remains to be seen what impact it might have to take the Pro model over the psychological $1,000 barrier.
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