iPhone 17 Price Hike Likely: Analysts Predict Major Increase

The iPhone 17’s back face might not be the only notable feature of this release. For several months, there has been speculation that this new batch of iPhones will come with a price increase. This possibility was recently highlighted by analyst Edison Lee from Jefferies, who predicts a moderate price rise of $50 across the entire lineup.

This idea isn’t exactly fresh. Back in May, the Wall Street Journal (WSJ) reported that such a price hike was under consideration in Cupertino. The potential increase is directly linked to the trade war initiated by Donald Trump, although Apple’s leaders would prefer not to explicitly blame this to avoid provoking the American president.

This is a delicate issue for the Apple brand, which is expected to provide more precise figures on the cost of these tariffs during the announcement of its quarterly results. Observers are now questioning whether the price increase will affect only the United States or be applied globally. Although not favored by consumers, the latter seems more likely as a means to finance the tariffs. Additionally, currency fluctuations must be considered; over the past year, the euro has appreciated nearly 6% against the American dollar, which could mean the price increase in the Eurozone might be less severe.

The Tariff Tangle

Since the trade war began in April, Apple executives hoped they could set prices for the new iPhone lineup this summer, assuming tariffs would have stabilized by then. Unfortunately, that has not been the case…

When Donald Trump started imposing strict tariffs on China in April, Tim Cook decided to shift focus to India, a country with which the American president had good relations. Within a few months, India emerged as the leading producer of iPhones for the American market. The agility and efficiency of Apple’s supply chain are truly remarkable.

However, this move was too conspicuous, and Donald Trump criticized Tim Cook for attempting to expand his mobile manufacturing chains in India. He demanded iPhones be made in USA. To complicate matters, Trump rediscovered that his country had a “massive trade deficit with India“. True to form, he then introduced a 25% tariff on Indian imports, set to start the following day.

Yet, nothing is set in stone with Donald Trump… Relations with China have somewhat improved. In May, the United States decided to reduce their tariffs on many imported Chinese products from 145% to 30%. This agreement, originally set for 90 days, is about to be extended. This is positive news, as while most of his products enjoyed a reduced surtax, many accessories (cables, keyboards, cases…) did not. Ultimately, whether there is a price hike or not, what everyone will be watching in just under two months is the manufacturing location of the iPhones sold in the United States. In such a chaotic situation, it’s clear why Apple might consider leveraging Intel. By doing so, it could please Donald Trump by producing a key component of its devices in the U.S. and curry favor with the American president. After all, realpolitik has always been Tim Cook’s approach.

And if Apple were to reengage with Intel to reduce its dependency on TSMC