It looks like Apple is increasing the prices of the upcoming iPhone 17, although there is another reason for it than the company itself indicates.
Apple increases prices of the iPhone 17
Tim Cook recently said that taking care of the consequences of Trump’s import duties will probably cost the company $ 900 million. At that time, he just did not respond to the question of whether a price increase for the iPhone 17 is coming.
A new report claims that Apple is indeed considering increasing the prices for the new iPhone line-up. Only the company will probably not give the true reason for this.
20% levies on iPhones made in China
The development of Trumps input taxes on products made in China can hardly be followed. In the meantime, five increases, a break and a partial exemption have already been reviewed. The last development is that the US and China corresponded to take a step back – but the rate of 20% imposed in March remains in force. This is the reason for the aforementioned 900 million dollars.
For the time being, Apple is trying to produce as many American iPhones as possible in India. However, that is insufficient to meet the enormous demand that arises in the launch of a new iPhone series. The majority of those $ 900 million probably relates to Chinese iPhone 17 models that are imported for the launch in September.
Price increases are likely
Cook may not comment on possible price increases when the iPhone 17 is launched, but in one Report from The Wall Street Journal states that the company is indeed considering price increases:
“Apple is Weighing Price Increases for its fall iPhone Lineup, a step it is Seeking to Couple with New Features and Design Changes, Accordination to People Family With The Matter […]
The People Family With The Supply Chain Said Apple Have Trouble Making Up For China Tariff Costs Solely by Seeking Further Savings From Its Suppliers, Meaning a Hit To Its Profit Margin was Likely Unless It Could Raise Prices. ”
“Apple is considering price increases for this fall iPhone series, a step that the company wants to link to new functions and changes in the design, according to people who are familiar with the business […].
The people who are familiar with the supply chain said Apple would have difficulty compensating for the costs of Chinese import duties by only looking for further savings at his suppliers. This means that the profit margin will probably fall unless the company can increase prices. “
If Apple does this, according to the report, the company will not say that it is due to the import duties of Trump. Instead, it will try to justify the increase by pointing to new functions. The extent to which the prices of the iPhone 17 series actually rise, for the time being.