Apple might raise iPhone prices despite its handling of tariffs so far

2025-09-03 17:19:33

Apple Tim Cook CEO (R) shakes hands with US President Donald Trump during an event at the White House Oval Office on August 6, 2025 in Washington, DC.

McNamee victory Gety pictures

When talented Tim Cook, Donald Trump presented a golden and glass plate last month, Wall Street, CEO of Apple, praised his job in managing the IPHOne maker’s relationship with the White House.

Cooking, Wall Street Commentators saidHe had largely moved the threat of definitions on Apple’s business successfully by providing an additional $ 100 billion investmentThe president’s victory can describe it as American manufacturing. But although the 24 -carat cup cooking Trump’s ladder, the real costs of this customs tariff for Apple customers later appear this month.

“Thank you all, and thank President Trump for the position of American innovation and American jobs in the forefront and the center,” Cook said in this event, which reached the total planning of Apple to $ 600 billion in the United States over the next five years. In this event, Trump said that Apple will be exempted from the upcoming definitions on chips that could double the price.

But as Apple is ready to announce the new iPhone devices on Tuesday, some analysts expect that the company will raise prices on its devices even after Cook has avoided the worst tariffs.

“A lot of gossip is: Will the price of the iPhone rise?” Countpoint Jeff Fieldhack said.

Although smartphones have not witnessed a significant increase in prices yet, Other consumer products You see an increase in prices driven by the costs of definitions, including clothes, shoes and coffee. The definitions have struck some electronics, especially video games – Sony, Microsoft and Nintendo, Arise The control unit prices this year in the United States

Some Wall Street analysts depend on Apple to follow up. JeffRies Edison Lee Baked analyst to increase $ 50 in the average price of the iPhone 17 in a note in July. It got a classification on Apple shares.

Goldman Sachs says that the possibility of increasing prices can increase the average selling price for Apple devices over time, and that the company’s phones mixed tending towards more expensive prices.

Analysts expect Apple to release four new iPhone models this month, which is likely to be named “iPhone 17”. Last year, Apple released four iPhone 16 models: iPhone 16 for $ 829, iPhone 16 Plus at $ 899, iPhone 16 Pro at $ 999, and iPhone 16 Pro Max at $ 1,199.

This year, many Supply chain monitors expect that the Apple Plus, which leaves the rest of the selection, with a new thinner device that trades additional cameras and features of a lighter and lighter body.

Analysts in Goldman wrote, but the bodies like battery life may make it difficult to compete with Apple models for beginners in Apple.

Analysts said they expect the slim device to cost about $ 899, similar to the iphone 16 Plus costs, but they were not excluded in the prices. This will continue to go into Samsung Thin Galaxy Edge, which first appeared this year at $ 1099.

Apple did not respond to a request for comment.

Samsung Galaxy S25 Edge on the screen while surrounding the Samsung KX store in London, UK

Arjun Khabal CNBC

How Cook managed to manage the customs tariff so far

When Trump announced comprehensive definitions on China and the rest of the world in February, Apple seemed to be at the intersection.

Apple makes the majority of iPhone and other products in China, and Trump threatened to put a customs tariff that might double the costs of Apple or more. Some “mutual” definitions of Trump will strike countries such as Vietnam and India, as Apple has surrounded its production bets.

But after seven months, Apple succeeded in wandering the tariffs better than many.

The United States government has arrested the most traded Chinese Drakaconian definitions several times, and smartphones I got an exemption From customs tariffs and cooking in maybe He said Investors that the company managed to rearrange its supply chain to import iPhone devices to the United States from India, where the definitions are less.

Cook also bent over his relationship with Trump, his visit to the White House and took his team in August, when Cook presented shiny taste to Trump. This commitment has strengthened Trump’s boost to bring more technical manufacturing to the United States, and Trump said it will excuse Apple from the semiconductor tariff as well. IEEPA’s tariff for Trump was sentenced illegal In late August, although it is still valid.

Apple did not miss the consequences of the tariff. Cook said that the company ruled 800 million dollars On the costs of customs tariffs in the quarter of June, this is mainly due to IEPA definitions in China. It was less than 4 % of the company’s profits, but Apple has warned that it might spend $ 1.1 billion in the current quarter at the customs tariff expenses.

After months From eating the costs of customs tariffs itself, Apple may finally pass these costs for consumers by launching iPhone 17 models for this month.

People are lined outside the Apple store in Dubai on September 20, 2024, where the new iPhone 16 is released in stores.

GiusePPE CACACE | AFP | Gety pictures

History of careful pricing

Apple was wise about increasing the prices of devices in the United States, and the younger Pro Pro phone did not get, for example, an increase in prices since it appeared for the first time in 2017, with $ 999. But Apple made some changes in prices.

The company raised the price of its phones at an entry level from $ 699 to $ 829 in 2020. In 2022 when Apple canceled the youngest iPhone Mini, which started with a price of $ 699, the company replaced by the largest screen in addition to the cost of $ 899. Pro Max also got an increase in 2023 when Apple collided from $ 1099 to its current price of $ 1199.

If Apple increases the prices on its phones this year, do not expect to blame the administration.

The average selling price for smartphones all over the world rises, according to IDC. The price of smart phone components, such as the camera unit and chips, has increased in recent years.

Apple is likely to focus on highlighting the features of its new phones and noticing the new price quietly. Analysts expect that new iPhone devices will contain larger screens and increase the fastest new memory and chips of Amnesty International.

“No one will come out and say it is linked to definitions,” said Nabila Boubal, an IDC analyst, said.

One of the ways to raise Apple is the skill of prices by canceling the novice version of its phones, forcing users to upgrade to get more storage at a higher start price. Apple usually imposes $ 100 to double the iPhone storage amount from 128 GB to 256 GB.

This is what JPMorgan analysts expect to announce Apple next week.

They expect Apple to leave the level of entry level and advanced Pro MAX models alone, but they wrote that they expect the company to cancel the novice version of the supporter, which means that users will have to pay $ 1099 for iPhone 17 Pro, which contains storage at the starting level more than its predecessor. This is how Apple raised the price of beginners for professionals in 2023.

“However, with the latest Apple advertisements for investments in the United States, the assumption is that the company will be largely protected from the customs tariff, which prompts limited price changes except for those related to changes in the basic storage of the Pro model.”

When Cook was asked about the increase in the potential apple prices in the profit call in May, he said that there is nothing to announce.

“I will only say that the operating team has done an incredible job about improving the supply chain and inventory,” Cook said.