iPhone 17 'Likely' To Be More Expensive Than iPhone 16 In The U.S., Analyst Claims
We've been discussing potential iPhone 17 price hikes for months, as Trump's new tariffs might impact Apple's products in various ways. Thanks to Apple's newly announced American Manufacturing Program initiative, paired with an additional $100 billion commitment to the U.S. economy, we know Trump's new 100% tariffs on semiconductors will not impact the chips going into the iPhone 17 models. However, Apple products will be subject to other tariffs. The iPhone maker expects to pay $1.1 billion in tariffs in the September quarter, after estimating a $900 billion tax hit for the June quarter.
It's not just buyers worrying about price tag changes for the iPhone 17 series. Analysts also expect the 2025 iPhones to be more expensive to American buyers. According to MacRumors, GF Securities analyst Jeff Pu says in a new research note that the iPhone 17 models will be more expensive in the U.S. than their iPhone 16 counterparts were. Apple will import the majority of new iPhones from India, which isn't subject to extra tariffs. Any iPhone 17 stock brought to the U.S. from China will be subject to 20% tariffs.
Pu didn't specify any price increases for the four iPhones expected to be part of the iPhone 17 series, but Pu's expectations align with other recent predictions concerning the price of the iPhone 17. A few days ago, Jefferies analyst Edison Lee offered price predictions for the iPhone 17 series, suggesting that only some models will see price hikes this September.
How much will the iPhone 17 models cost?
Lee said that Apple might not increase the price of the base iPhone 17 model. If that turns out to be accurate, the phone will cost $799. However, the iPhone 17 Air and the iPhone 17 Pro could cost $50 more than their predecessors. Of course, the iPhone 17 Air doesn't technically have a predecessor. The iPhone 16 Pro started at $899 in the U.S., a price point the iPhone 17 Air could very well inherit. However, the iPhone 17 Air will debut a new form factor. Some reports suggest the iPhone 17 Air will feature specs similar to the iPhone 17 Pros, including a 120Hz display and the new A19 Pro chip. Tariffs notwithstanding, a price hike of $50 wouldn't be surprising.
As for the Pro models, a $50 price hike would see the prices go up to $1,049 (iPhone 17 Pro) and $1,249 (iPhone 17 Pro Max). Another option is for Apple to eliminate the 128GB storage tier for the iPhone 17 Pro, like it did with the iPhone 15 Pro Max. In this scenario, the cheapest iPhone 17 Pro would feature 256GB of storage and start at $1,099. That's the same price as the 256GB iPhone 16 Pro, but a higher entry price for buyers, and likely a higher average selling price for the iPhone 17 lineup.
Finally, the iPhone 17 Pro Max should start at $1,199, provided Apple doesn't increase the iPhone 17 Pro Max price by $50. Any exclusive iPhone 17 Pro Max features, like more RAM, a better camera experience, a larger battery, faster charging speeds, and a smaller Dynamic Island cutout, could always trigger a price markup. A $50 price hike would make sense. It might also account for some of the tariff costs that Apple still has to pay.