The launch of the iPhone 17 is eagerly awaited, with Apple anticipated to introduce an innovative range that includes the iPhone 17, 17 Air, 17 Pro, and 17 Pro Max. The iPhone 17 Air, expected to showcase a sleeker design incorporating some hardware from the Pro model, might be priced higher, likely taking the place of the Plus model. This potential price hike could be affected by possible tariffs on iPhones, following President Trump’s warning of a 25% tariff on iPhones sold in the US but produced elsewhere. Historically, Apple has maintained steady iPhone pricing, with significant changes being limited to the elimination of the 128GB variant for the Pro Max model beginning with the iPhone 15 Pro Max.
To counter any possible price surges due to tariffs, Apple is reportedly in talks with suppliers to reduce the expenses of essential components, such as OLED screens from Samsung and LG, along with camera components from LG Innotek. LG has allegedly agreed to reduce prices, while negotiations with Samsung continue. Additionally, Apple might explore utilizing BOE OLED panels to urge Samsung to lower their costs.
The success of these approaches will depend on how the tariffs affect the bill of materials (BOM) for the iPhone, which is estimated to be around $570 for the iPhone 16 Pro. A 25% tariff would apply to this amount, so lowering the BOM might lessen the tariff’s repercussions. Apple could opt to absorb part of the tariff expense or pass it on to buyers, potentially through targeted price increases for specific models. For instance, the base iPhone 17 could remain priced at $799, while the iPhone 17 Air may launch at $999, and the Pro models could start with 256GB storage, doing away with the less expensive 128GB option.
Ultimately, Apple strives to keep the iPhone 17 pricing as similar to last year’s as feasible, although this remains uncertain. The ideal scenario would be preserving the existing pricing framework, but this depends on whether tariffs come into play. As of now, no tariffs have been officially declared for iPhones.
