iPhone prices to rise as Apple sees $900 loss from US tariffs

Standard iPhone 16 model, originally coming for $799, might see 43% price increase to settle at $1,142 because of added levies
An undated image. — Pexels
An undated image. — Pexels

In a move which might compel devoted iPhone users to shift their loyalties towards the company's competitors, Apple is mulling over a price hike for its upcoming iPhone 17 lineup.

The tech giant seems to be deeply troubled by the US tariffs imposed on Chinese imports, but the iPhone maker is reportedly willing not to link the impending price hike to trade tensions.

Citing a Wall Street Journal report, Reuters reported that Apple is up to a new pricing strategy, which would be more in line with new features and design changes, including an ultra-thin form factor, ultimately justifying the costly iPhone 17.

Although the US and China have agreed to temporarily reduce some reciprocal tariffs, a 30% levy will still be charged on many Chinese imports, where the tech titan runs its biggest iPhone assembly factory.

Greatly affected by the US tariffs, Apple has estimated a $900 million loss in the April–June quarter. To get around steep duties enforced on iPhone imports, the company has increased iPhone production in India, aiming to import most of its US-bound models from there.

According to an analyst, the tariffs are adding costs across the board, and Apple’s looking for ways to absorb that without alienating customers.

The standard iPhone 16 model, originally coming for $799, might see a 43% price increase to settle at $1,142 because of added levies, as per projections from Rosenblatt Securities.