Apple may raise iPhone 17 prices but not blame tariffs

AppleInsider

A new report says that Apple is considering raising iPhone prices to counter the impact of Trump's tariffs, but has learned from Amazon not to say that's the reason.

The iPhone 17 range is expected to include a new, slimmer model

While the US and China have announced a temporary pause in their tariff dispute, there is still a question of the semiconductor tariffs said to be coming. Plus the new pause does not affect the 20% smartphone tariff imposed by Trump during his first administration.

According to the Wall Street Journal, Apple has been working to get its suppliers to reduce costs. But it has reached the limit of that approach, and now considers raising iPhone prices to be the least worst option.

Citing two unspecified sources said to be familiar with the supply chain, the publication reports that Apple is wary of blaming tariffs for any price rise. That's because there was a claim in April that Amazon would display the additional costs caused by tariffs.

The claim was immediately lambasted by the White House, which called it a "hostile and political act." Amazon then issued a denial, saying it had never considered the change.

Consequently, Apple is aware that any acknowledgement of the truth that it is tariffs that are pushing up costs for it and consumers, could endanger its ongoing dealings with Trump. It was through Tim Cook's direct dealings with Trump that the president granted Apple a tariff exemption, even though Trump immediately said that he had done no such thing.

The sources familiar with the supply chain say that instead of tariffs, Apple wants to be able to account for price increases by pointing to specific new features of the iPhone 17 range. However, it's not known which features these could be.

When Apple launches its 2025 range of new iPhones, it is expected to include a new, slimmer model. It's not clear whether this model can be made in countries facing lower tariffs than China.

What is clear is that higher-end models such as the iPhone 17 Pro and iPhone 17 Pro Max will continue to be made in China.



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carmb

Here's the bottom line. Independant of all the rhetoric, labelling and so on, voters will make a determination based simply on if the cost of buying stuff has gone up. Being as it seems we're getting nothing but inflationary activity occurring at the top, it's reasonable to anticipate high inflation in the coming year. If IPhones and most other items are going to cost more, this will trump - pun intended - all else. It matters not if sellers attribute higher prices to all this tarrif nonsense. Relief for higher prices were promised and if US consumers wind up with the opposite, that's a fail. Period. Forget the stock market. Forget the political posturing. Forget what retailers tell you. Higher prices are higher prices. The rest will be perceived as just noise. 

danox

The damage is done. The genie is out of the bottle and the bull is out of the barn and running down the road.

edited May 12

anthogag

A price increase due to tariffs should only affect the US. Your President is the one using tariffs like it's going out of style. However, it is tempting for Apple to raise prices on other countries around the world to pay for no price increase in the US.