UPDATE: Apple is poised to increase prices for its highly anticipated iPhone 17 lineup, with some models expected to cost up to $100 more than their predecessors. Analysts predict this significant price hike is driven by rising tariff costs and changes in storage options.
The tech giant is scheduled to unveil the iPhone 17 on September 12, 2023, and Wall Street analysts are already forecasting higher price tags. According to a recent note from Morgan Stanley, some new models could see price increases between $50 and $100, marking the first raise in seven years.
The anticipated price adjustments will likely eliminate the lowest-cost option for the Pro model, starting at $1,099 for the 256-gigabyte variant, compared to the current iPhone 16 Pro, which starts at $999. This shift could impact many consumers looking to upgrade.
Moreover, Bank of America analysts expect the new iPhone 17 “Air” model to debut at roughly $999, replacing the larger Plus model that currently starts at $899. This anticipated change reflects a broader trend of increasing costs for premium smartphone features.
On the other hand, Jefferies analysts project a modest $50 price increase, or a 4% to 5% rise from 2024, largely aimed at offsetting the effects of tariffs on manufacturing costs. This adjustment is expected to affect the Pro and Pro Max models, as well as the new slimmer variant.
Apple has faced challenges in managing production costs, including an $800 million impact from tariff adjustments last quarter. While an exemption for some tariffs was announced in August, the company is actively diversifying its supply chain, shifting manufacturing away from China to countries like India to mitigate future risks.
In this rapidly changing market, consumers keen on upgrading to the iPhone 17 should prepare for these potential price hikes. As the launch event approaches, many are eager to see how Apple will balance innovation with affordability.
Stay tuned for more updates as we approach the launch event. What remains clear is that the iPhone 17 could redefine pricing standards in the smartphone market, impacting millions of consumers worldwide.
