Apple Raises iPhone 17 Pro Starting Price Amid Tariff Pressures
Apple announced a significant price increase for its iPhone 17 Pro model, raising the starting price in the United States to $1,099, up $100 from the iPhone 16 Pro launched last year. This marks the first time since the iPhone X in 2017 that Apple has increased the entry-level Pro model’s price above $999.
Alongside this, Apple replaced its previous $899 iPhone 16 Plus with a new device called the iPhone 17 Air, which starts at $999, also $100 more than its predecessor. This new model is designed to be thinner and lighter, positioning it between the standard iPhone 17 and the Pro lineup.
Stable Pricing for Other Models and Devices
Despite the price hikes for certain models, Apple maintained the starting price of the standard iPhone 17 at $799, and the premium iPhone 17 Pro Max also saw no price change. Additionally, prices for the newly introduced AirPods, capable of real-time translation, remain at $249, consistent with the first AirPods Pro released in 2019. The Apple Watch Series 11 and the Ultra 3 sport watch models also retained their previous price points of $399 and $799 respectively.
Tariffs and Storage Upgrades Drive Price Adjustments
Apple has managed to mitigate some tariff impacts by shifting iPhone production from China to India, where tariffs are lower. However, the company anticipates spending over $1 billion on tariff costs this quarter, contributing to the price adjustments. While Apple did not explicitly cite tariffs during the announcement, it highlighted that all entry-level iPhone 17 models now come with 256GB of storage, double last year’s standard 128GB, as a justification for the price increase.
Customers looking to upgrade storage further will face additional costs; for example, increasing to 512GB on the iPhone 17 Air costs an extra $200.
Apple’s chief marketer Greg Joswiak emphasized, “iPhone 17 Pro starts at $1099, the same great price as last year’s 256 gigabyte iPhone 16 Pro,” underscoring the company’s focus on value through increased storage rather than just price hikes.
FinOracleAI — Market View
Apple’s decision to raise the starting price of the iPhone 17 Pro and introduce a pricier iPhone 17 Air reflects cost pressures from tariffs and supply chain adjustments. While the price hikes could weigh on demand, the enhanced base storage and stable pricing for other models may help mitigate negative consumer reactions. The absence of price changes for the flagship Pro Max and other hardware signals Apple’s cautious approach to balancing profitability and market competitiveness.
Impact: neutral
