Cupertino, California – May 12 – Apple is reportedly planning a price hike for its upcoming iPhone 17 lineup, set to launch this September, in response to rising production costs and supply chain disruptions fueled by ongoing U.S.–China trade tensions, according to a report from the Wall Street Journal.
The price increase is expected to be accompanied by new design elements and upgraded features, including a rumored ultra-thin iPhone 17 Air and a redesigned rear camera cluster, as Apple looks to refresh its flagship smartphone amid fierce competition and economic headwinds.
Tariff Pressure Mounts
While Apple has not officially confirmed any pricing changes, the company is under increasing pressure as a result of U.S. tariffs on imports from China, where most iPhones are still assembled. Although recent trade talks between Washington and Beijing resulted in a 90-day delay on some reciprocal tariffs, Apple’s core products remain subject to a 30% import tax, driving up costs.
In a statement earlier this month, Apple warned that tariffs are expected to add $900 million in costs during Q2 2025 alone. The company said it is ramping up iPhone production in India to mitigate the impact, with the majority of iPhones sold in the U.S. during this quarter expected to be made outside of China.
Pricing Could Exceed $1,100 for Entry-Level Model
According to Rosenblatt Securities, the starting price of the iPhone 17 could climb significantly, with the base model potentially priced at $1,142 in the U.S., compared to $799 for the iPhone 16. While Apple is cautious not to attribute the increase directly to tariffs, analysts suggest the hike is a strategic move to maintain profit margins amid higher production costs.
Innovation or Inflation?
To soften the impact of the price increase, Apple plans to roll out notable hardware upgrades and sleek design changes, including the launch of the iPhone 17 Air, an ultra-thin model that could mark a new era in minimalist design. Other enhancements may include adjustments to the rear camera system, refined materials, and expanded AI-driven features.
However, some industry watchers warn that Apple’s slow rollout of generative AI tools may put it at a disadvantage against rivals like Samsung, which is aggressively marketing AI-powered capabilities in its latest devices.
Looking Ahead to iPhone’s 20th Anniversary
Looking further ahead, Bloomberg’s Mark Gurman revealed that Apple is already planning a major innovation leap for the 2027 iPhone, which will mark the product’s 20th anniversary. The future model could feature a fully curved, mostly glass body with no cutouts, offering a futuristic take on Apple’s design legacy. The last major design overhaul occurred in 2017 with the iPhone X, which introduced edge-to-edge displays and eliminated the iconic home button.
Market Response
While some Apple loyalists are likely to embrace the upcoming iPhone 17 regardless of price, analysts caution that rising prices may erode Apple’s market share, particularly in developing markets and among cost-conscious consumers.
With the official unveiling just months away, consumers and investors alike will be watching closely to see how Apple balances innovation, pricing, and geopolitical risk in a shifting global tech landscape.
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Source: Vietnam Insider