During Apple’s recent earnings call, CEO Tim Cook revealed that absorbing the impact of tariffs was likely to cost the company about $900M in the current quarter.However, he refused to be drawn about whether we can expect iPhone 17 prices to be increased in response.A new report today claims that Apple is considering raising prices for the new iPhone line-up, but almost certainly won’t give the real reason for this … Apple incurring 20% tariffs on Chinese-made iPhones If you’re not up to speed on Trump’s tariffs on products manufactured in China, that’s no surprise.
You can see the full timeline here, but the exec summary is five increases in nine weeks, followed by a pause, a partial exemption on consumer electronics products, and a warning that this exemption would be temporary.The latest development was today, when the US and China mutually agreed to step back from the brink – but the 20% tariff imposed in March remains in place.It is this which accounts for Apple’s additional $900M cost.
For now, Apple is trying to source as many US iPhones as possible from India, but there is no possibility that it can do this for the massive demand that occurs when a new line-up is launched.It’s likely that the bulk of that $900M relates to Chinese-made iPhone 17 models imported for the September launch.Apple might increase iPhone 17 prices Cook declined to comment on possible price raises when the iPhone 17 launches, but a report states that the company is considering increases.
Without stating the reason If the company do this, says the report, Apple won’t explain that it’s due to tariffs.Instead, it will try justifying the rise by pointing to new features.The reason is simple: the company fears retribution from Trump.
It was last month reported that Amazon planned to break down pricing to show that increases were due to tariffs, but when the White House said it would consider this “a hostile act,” company founder Jeff Bezos quickly claimed it was just an idea that had been kicked around internally, but “was never approved and is not going to happen.” 9to5Mac’s Take There’s less to this report than meets the eye.The cites supply-chain sources, who would not have visibility into Apple pricing decisions.It seems instead to be quoting speculation.
Sure, that speculation will be accurate: of Apple will have considered increasing prices as opposed to taking a big hit to its margins.It’s also a certainty that if the company does this, it won’t blame Trump.But the report tells us nothing about the company’s thinking, nor the likelihood of this happening.
If I had to guess, I’d predict $50 raises across the board because Apple hates to sacrifice margin, but that’s just my own speculation.Highlighted accessories Anker 511 Nano Pro ultra-compact iPhone charger Spigen MagFit case for iPhone 16e – adds MagSafe support Apple MagSafe Charger with 25w power for iPhone 16 models Apple 30W charger for above Anker 240W braided USB-C to USB-C cable You’re reading 9to5Mac — experts who break news about Apple and its surrounding ecosystem, day after day.Be sure to check out our homepage for all the latest news, and follow 9to5Mac on Twitter, Facebook, and LinkedIn to stay in the loop.
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