iPhone 17 Likely to Cost More Than iPhone 16 — Here's What's Fueling the Price Rise

The iPhone 17 series is expected to feature significant changes to the design and specifications, but it will likely come with a premium price tag. A new report claims that Apple will increase the price of the iPhone 17 to offset the expenses incurred as part of its overhaul strategy. However, the biggest factor could be the new tariffs in the US. The iPhone 17, thus, will cost more than the iPhone 16.

Analytics firm Counterpoint Research said that the rising costs and the tariff hike in the US could result in a higher price tag for the base iPhone. Apple has maintained a consistent price tag for its new iPhones each year, despite new upgrades and technologies in them. The additional factors may force Apple to spend more on making an iPhone, but instead of absorbing the costs, the company might pass them down to customers.

“North America is expected to decline due to expected price increases from tariffs,” said Counterpoint Research, highlighting that the iPhone demand in Apple’s key markets, including China, has slowed down despite a change in sales strategy, such as deep discounts. Absorbing the additional costs in the wake of a downturn in sales may not help Apple bolster its position, so a price hike for the iPhone makes sense. But Apple may try to justify the increase by showcasing the redesign and hardware overhaul in the iPhone 17 series.

Three main reasons why the iPhone 17 may be more expensive:

— Higher tariffs: On multiple occasions, US President Donald Trump has threatened Apple with a higher levy if his conditions, which are deemed part of the government’s strategy to boost local manufacturing, are not met. Initially, Trump imposed reciprocal tariffs on nearly every exporter nation, but the decisions were later reversed. Still, Apple fears a marginal hike because it manufactures its iPhones mainly in China, the worst-hit country by tariffs. Even though the tariffs on exports from India will not be taxed more than regular, Trump warned Apple last month that all iPhones sold in the US must be locally manufactured, or else they will attract a tariff.

— Slow demand: Counterpoint said the sales of iPhones in Apple’s key markets, the US and China, have slumped in recent months. Even though Apple doled out discounts on various iPhone models in China to boost sales, the response remained lacklustre. In the US, the market stagnation and the fear of higher prices urged customers to preempt their purchases earlier this year. The demand for the next iPhones, thus, could be weaker than expected. A price hike in iPhones may help Apple compensate for the lack of high demand and adjust its revenue.

— A Revamp: Apple is expected to include major redesigns in the next iPhone series, switching to a bolder rear panel with a two-tone finish. The next iPhone is also expected to bring a more powerful processor, a better display, enhanced cameras, and an expanded suite of Apple Intelligence services. All of this could attract a premium, and Apple may be better positioned to pitch it as a more expensive phone.

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