iPhone 17: Apple May Raise Prices Amid Tariff Costs

Apple may raise iPhone prices despite avoiding tariffs. The company has absorbed $800mln in tariff costs and warned of a potential $1.1bln hit this quarter. Analysts predict a $50 price bump for the iPhone 17's average selling price. A new thinner, lighter model could replace the entry-level Plus, but trade-offs like weaker battery life might keep it from replacing the entry-level spot. The real question is whether new features will justify higher prices for shoppers.

Apple Inc. (NASDAQ:AAPL) is expected to announce a price hike for its new iPhone models at an event scheduled for Tuesday, September 9, 2025. This development comes as a surprise, given CEO Tim Cook’s successful management of the tariff issue with the Trump administration. Despite absorbing $800 million in tariff costs and warning of a potential $1.1 billion hit this quarter, analysts predict a $50 price bump for the iPhone 17's average selling price.

Analysts from Jefferies and Goldman Sachs have incorporated higher price points into their forecasts. Jefferies analyst Edison Lee has estimated a $50 increase in the iPhone 17’s average selling price, while Goldman Sachs analysts suggest that potential price increases could continue lifting Apple's overall device average selling price, particularly as the company's smartphone lineup trends toward higher-end pricing.

A new slimmer, lighter model is rumored to replace the entry-level Plus, but trade-offs like weaker battery life might keep it from replacing the entry-level spot. This new model is expected to be priced around $899, according to Goldman Sachs analysts, though a potential price increase hasn't been ruled out.

The decision to raise prices comes amidst a broader trend of increasing smartphone prices globally, driven by rising costs of components like camera modules and chips. Apple could also discreetly hike prices by discontinuing its entry-level model, effectively pushing users to pay more for higher storage at a steeper starting price.

The potential price increase is expected to impact Apple’s sales and market positioning, especially as the company is expected to release four new iPhone models this month. While tariffs may not be the sole reason for the price hike, they have contributed to the overall cost structure. Apple has been navigating tariff changes and has shifted some manufacturing away from China to countries like India to mitigate the impact.

The real question for consumers is whether the new features and improvements in the iPhone 17 will justify the higher prices. Apple’s focus on innovation and quality has traditionally commanded a premium, but the competitive landscape and economic conditions may influence consumer willingness to pay.

References:
[1] https://www.inkl.com/news/apple-expected-to-raise-iphone-prices-this-month-despite-tim-cook-s-tariff-win
[2] https://www.businessinsider.com/apple-iphone-17-price-increase-models-pro-air-analysts-2025-9
[3] https://www.webpronews.com/apple-unveils-iphone-17-series-airpods-pro-3-at-september-9-event/