The new iPhone 17 is creating a lot of hype, not only for its speculated features such as a better camera, increased memory, and a stunning ultrathin look, but also for speculation of its price. Although Apple has not officially released details, analysts predict the new phone will hit markets in September, and several factors — from tariffs to production expenses to the general U.S. economy — could dramatically impact its retail price.
Tariffs are among the largest variables. President Donald Trump has floated a 25% tariff on iPhones produced outside the U.S., introducing uncertainty into Apple‘s pricing model. Presently, there is a 10% starting point tariff on all imports and a 30% tariff on Chinese goods, where the majority of iPhones are produced. If the present short-term tariff-rate freeze runs out — with July and August deadlines — that 26% rate for Indian imports and 145% rate for Chinese imports might jump in, raising the cost of production almost inevitably, if not necessarily by a 1:1 ratio against retail prices.
What is Apple doing?
Apple has sought to counteract the blow by shifting some production to India and pre-stocking devices, but these are stopgap measures. Manufacturing iPhones in the U.S., as Trump indicated, is not on the horizon given staggering increased costs — one estimate puts a domestically made iPhone at as much as $3,500.
There are several other reasons why prices might go up. Apple already intends to increase iPhone prices this year, as reported by The Wall Street Journal. CNET’s Patrick Holland mentions that the lowest model hasn’t had a price hike since 2020. In the past, Apple typically hikes prices every five years by $50 to $150. Based on the pattern, the iPhone 17 would cost between $850 and $950, an increase from the iPhone 16’s starting price of $799.
There is also a new model — the iPhone 17 Air — said to be an ultraslim high-end version. Originally anticipated to be more expensive than the Pro model, more recent pricing estimates put it at approximately $900, close to the current price of the iPhone 16 Plus. But that does not yet account for possible tariff-driven price hikes.
There is also economic uncertainty. Inflation, supply chain issues, and higher interest rates might all contribute to increased costs for Apple, which would be passed on to consumers. Conversely, a weak economy might force Apple to keep prices in check to stay competitive.
Even older models of iPhones could be more costly if demand for them increases as an affordable replacement for a higher-priced new phone. This would also enhance the resale value of older iPhones, providing possible savings via trade-in.
Lastly, Apple can mitigate the effect of increased production costs by raising the price of subscription services — like Apple Music or iCloud — instead of undertaking drastic jumps in hardware prices.
Ultimately, the exact price of the iPhone 17 remains uncertain. While informed predictions are being made based on current trends, tariff policy shifts, and economic conditions, consumers will have to wait until Apple’s official announcement for clarity.
