Graphics: Rajesh Pandey/CultOfMac
Tariffs might power Apple to extend the costs of the iPhone 17 household lineup this yr. The corporate will reportedly spotlight the brand new design and options to justify the worth enhance.
With out elevating costs, Apple can’t offset the elevated tariffs on Chinese language-imported merchandise offered within the U.S.
Blame tariffs if iPhone 17 will get a worth bump
Because of the ongoing tariff warfare between the U.S. and China, Apple plans to transfer manufacturing of all iPhones offered within the U.S. market to India by 2026. It is a two-year-long course of. Till then, Apple will nonetheless pay tariffs on iPhones imported from China to the U.S.
Earlier at this time, on Monday, Might 12, in a joint assertion, the 2 nations suspended the absurd 115% + tariffs on merchandise imported from one another for the subsequent 90 days. Whereas that’s a reduction, the Trump administration’s 20% tariff applied in March this yr stays in place.
In keeping with The Wall Avenue Journal, Apple might increase the costs of the iPhone 17 lineup to offset increased tariffs. Its provide chain alone can’t take up the additional value. And promoting the brand new iPhones at their current costs might result in a major hit to its revenue margin.
Plus, the corporate can’t publicly blame the worth enhance on the tariff, as that may anger the Trump administration. So, Apple will supposedly use the iPhone 17’s design enhancements and new options to justify its increased worth.
Apple wants time to scale its manufacturing in India
Regardless of Apple’s deal with increasing manufacturing in India, it can’t construct complicated merchandise on a big scale within the nation as a result of lack of technical experience.
In 2024, Apple began assembling iPhone 16 Professional in India inside days of its international launch. This yr, the iPhone 17 Air and iPhone 17 Professional lineup will purportedly pack larger adjustments. And Apple’s factories in India is perhaps unable to mass produce sufficient models to satisfy the preliminary demand.
Nothing is remaining for now, although. With a couple of months left for the iPhone 17’s launch, Tim Cook dinner might safe a tariff exemption from the U.S. authorities by then.
