Apple's iPhone 17 Price Hike Likely, Jefferies Expects Strong Q4 Results

Jefferies expects Apple's iPhone 17 price hike, but it's not enough to re-rate the stock. Analysts led by Edison Lee anticipate a $50 increase in the selling price for iPhone 17 Slim/Pro/Pro Max. Despite this, the firm remains cautious and expects strong Q4 results.

Apple is set to unveil its iPhone 17 series in September 2025, and according to recent reports, the company may increase prices across the new models by $50. This price adjustment is expected to impact all iPhone 17 models, including the base iPhone 17, the new iPhone 17 Air (replacing the Plus), iPhone 17 Pro, and Pro Max. The current iPhone 16 starts at $799, while the iPhone 16 Pro Max sells for $1,199. The price hike is reportedly due to increasing component costs and China tariffs [1].

Jefferies analysts led by Edison Lee anticipate a $50 increase in the selling price for iPhone 17 Slim/Pro/Pro Max. Despite this expected price hike, the firm remains cautious and expects strong Q4 results. The analysts cited strong iPhone performance in the second quarter of 2025 as a positive indicator. However, they did not re-rate Apple’s stock (AAPL) due to the anticipated price increase [1].

U.S. telecom companies reported 22% year-over-year equipment growth, the highest growth in six quarters. This strong demand may have supported Apple’s pricing decision. Apple is reportedly focused on balancing pricing with innovation and adding new features and design upgrades to justify the cost to consumers [1].

Apple's financial results for the second quarter, to be published on Thursday, are expected to show a stabilization in iPhone sales growth. Analysts predict a 2.1% year-over-year growth, which is slightly better than the 1.9% from the previous quarter. This moderate growth is seen as a positive signal for the upcoming iPhone 17 series [2].

Apple's recent AI developments, while not revolutionary, are still significant. The company is expected to make further advancements in AI, potentially through the acquisition of a startup like Perplexity, which could help Apple enter the AI search market. The company is also dealing with the impact of President Trump's high import tariffs, which are expected to cost Apple up to $900 million [2].

In summary, while Apple's iPhone 17 series is expected to see a price hike, analysts remain cautious about the impact on the stock. The company is focused on innovation and adding value to its products to justify the price increase. Apple's financial results for the second quarter are expected to show moderate iPhone sales growth, which is seen as a positive signal for the upcoming iPhone 17 series.

References:
[1] https://www.techjuice.pk/iphone-17-series-could-get-a-50-price-increase/
[2] https://www.letemsvetemapplem.eu/en/2025/07/30/iphone-uz-netahne-jako-driv-apple-doufa-ze-podzim-vse-zmeni/