Apple may raise iPhone prices despite previous customs handling

When Tim Cook gave President Donald Trump gold and glass plaque last month, Apple CEO was welcomed to Wall Street for his job managing the iPhone maker’s relationship with the White House.

According to Wall Street commentators, Cook said he was primarily navigating the tariff threat to Apple’s business by providing Trump with an additional $100 billion in US investment. But despite Trump handed over a 24-carat trophy cook, the true costs of these tariffs may finally show up to Apple customers later this month.

“Thank you and to President Trump for taking American innovation and American employment as a front and center,” Cook said at the event. Trump said at the event that Apple will be exempt from upcoming tariffs on tips that could double the price.

But as Apple prepares to unveil a new iPhone on Tuesday, some analysts predict that the company will raise the price of its devices, even after Cook goes to avoid the worst tariffs.

“A lot of chattering, will the iPhone rise in prices?” said Jeff Field Hack, Director of Counterpoint Research.

Smartphones have yet to see a significant price rise, but other consumer products have seen price increases caused by tariff costs such as apparel, footwear and coffee. And tariffs have hit some electronic devices, especially video games – Sony, Microsoft and Nintendo have raised console prices in the US this year

Some Wall Street analysts rely on Apple to follow. Jeffreys analyst Edison Lee baked an average selling price forecast for the iPhone 17 at a price increase of $50 in a July memo. He has a hold rating on Apple Stock.

Analysts at Goldman Sachs say the likelihood of price increases could raise the average selling price of Apple devices over time, and the company’s mobile phone mix is ​​skewed towards more expensive prices.

Analysts are hoping Apple will release four new iPhone models this month. This could be called the “iPhone 17” series. Last year, Apple released four iPhone 16 models: the base iPhone 16 for $829, the iPhone 16 Plus $899, the iPhone 16 Pro $999 and the iPhone 16 Pro Max $1,199.

This year, many supply chain watchers are hoping that Apple will replace Plus models that will slow the rest of the lineup.

“Thinner, lighter form factors could drive demand interest,” writes Goldman analysts, but trade-offs like battery life can make them more difficult to compete with Apple’s entry-level models.

Analysts expect slim devices to cost around $899, similar to the iPhone 16 Plus, but have not ruled out price bumps. It still undercuts Samsung’s Thin Galaxy Edge and debuted earlier this year for $1,099.

Apple did not respond to requests for comment.

When Trump announced sweeping tariffs in China and other parts of the world in February, it seemed Apple was on the crosshairs.

Apple has made most of the Chinese iPhone and other products famous, and Trump threatened to impose tariffs that could double Apple’s costs. Some of Trump’s so-called “mutual” tariffs will clash with countries like Vietnam and India where Apple hedged its production bet.

But seven months later, Apple has overcome tariffs more than many people imagined.

The US government has suspended the strictest Chinese tariffs several times, with smartphones being exempt from tariffs, and the May chef told investors that the company could reposition its supply chain and import iPhones into the US from India, where tariffs are low.

Cook also leaned on his relationship with Trump, visiting him at the White House, robbing him in August when Cook presented Trump with a shiny memorabilia. That commitment has bolstered Trump’s push to redeem more tech manufacturing for the United States, Trump said he would also exempt Apple from future semiconductor tariffs. And although Trump’s tariffs were ruled illegal in late August, they are still in effect.

Apple has not completely missed the outcome of the tariffs. Cook said the company spent $800 million on tariff costs in the June quarter. This is primarily due to China’s IEPA-based tariffs. This was less than 4% of the company’s profits, but Apple warned that it could spend $1.1 billion on tariff costs this quarter.

After eating the tariff costs themselves for several months, Apple will ultimately be able to pass those costs to consumers with the launch of the iPhone 17 model this month.

For example, Apple is wise about rising hardware prices in the US, with fewer professional phones, for example, holding $999 since its debut in 2017. However, Apple has changed some prices.

The company increased the price of entry-level phones from $699 to $829 in 2020. When Apple eliminated the small iPhone Mini, which started at $699 in 2022, the company replaced it with a larger screen and $899. The Pro Max was hiked in 2023 when Apple hit a price of $1,099, from $1,199.

If Apple is raising mobile phone prices this year, don’t expect management to condemn the tariffs.

According to IDC, the average selling prices for smartphones around the world are rising. Prices for smartphone components such as camera modules and chips have been increasing in recent years.

Apple is much more likely to focus on highlighting new features on mobile phones and quietly pay attention to new prices. Analysts hope that the new iPhone will have a bigger screen, more memory and a new faster chip of AI.

“No one comes out and says it’s related to tariffs,” said IDC analyst Nabila Popal.

One way Apple can subtly raise prices is to eliminate entry-level versions of phones, and to force upgrades to allow users to get more storage at a higher starting price. Apple usually charges $100 to double the amount of storage on your iPhone from 128GB to 256GB.

That’s what JPMorgan analysts hope Apple will announce it next week.

They predict that Apple will leave the price alone for the entry-level and high-end Pro Max models, but they write that the company is hoping to eliminate the professional entry-level version. This means that users will have to pay $1,099 for an iPhone 17 Pro, which has more starting level storage than their predecessors. This is why Apple raised the price of its entry-level Pro Max in 2023.

“However, the assumption that Apple’s recent investment announcement will encourage expectations for limited pricing changes, except those related to changes in the base storage configuration of the Pro model, is relevant to investments in our company.

When asked about a potential Apple price hike in the revenue call in May, he said “There’s nothing to announce.”

“The operations team just say they’ve done an incredible job on supply chain and inventory optimization,” Cook said.

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