iPhone 17 Price Hike Likely as US Tariffs Hit Apple Imports from China and India, Analyst Warns

The iPhone 17 is set to launch next month, and while excitement is growing for Apple’s next flagship, a new concern is dominating the conversation: the potential for a price hike of the new iPhones.  Market analyst Jeff Pu explains that this situation arises from the rising import tariffs imposed by the United States under President Donald Trump’s trade policies.

In a research note this week, Pu mentioned that the upcoming iPhone 17 might face a significant price increase due to tariffs on products brought in from countries where the devices are assembled, primarily China and India. Currently, Apple pays a 20% tariff on iPhones imported from China. In contrast, iPhones produced in India do not incur this import tax. 

However, the situation is not stable. The Trump administration’s tariff policies have shown sudden changes, meaning iPhones made in India could also become targets in the future. This unpredictability is causing analysts to worry about Apple’s ability to keep iPhone prices reasonable in the market. 

Apple CEO Tim Cook has shared that most iPhones sold in the United States are now imported from India. This marks a major shift from just a few years ago, when most came from China. Apple has been actively increasing its manufacturing operations in India, working with suppliers like Foxconn and Pegatron to diversify its supply chain and rely less on Chinese factories amid ongoing tensions between the US and China.

While moving production to India has allowed Apple to avoid the 20% tariff from China, Pu cautions that if the US implements similar duties on products made in India, it could increase the iPhone 17's price by hundreds of dollars. With flagship smartphones already expensive, such a rise could frustrate consumers and impact sales.

The timing is especially challenging for Apple. Global smartphone shipments are facing pressure as buyers keep their devices longer and wait for meaningful upgrades before purchasing. If the iPhone 17 arrives with a significantly higher price, Apple may need to emphasise financing options, trade-in programs, and carrier discounts to sustain demand.

Read More: iPhone 17 to Finally Address Issue With Apple’s Standard Model