Apple Inc. (NASDAQ:AAPL) is expected to increase the prices of its new iPhones, despite CEO Tim Cook‘s successful handling of the tariff issue with the Trump administration.
Goldman, Jefferies Flag Higher iPhone Prices Ahead
Apple is anticipated to announce the price hike for its new iPhone models on Tuesday, September 9, according to CNBC. This development comes as a surprise, given Cook’s efforts to mitigate the impact of tariffs on Apple’s business by promising an additional $100 billion U.S. investment to President Donald Trump.
Check out the current price of AAPL stock here.
Analysts are speculating that the iPhone prices might rise, despite the absence of significant price hikes in the smartphone market. Besides apparel, footwear, and coffee, the electronics industry has been affected, with companies like Sony, Microsoft (NASDAQ:MSFT) and Nintendo raising console prices in the U.S.
Hence, a few Wall Street analysts are predicting a potential price increase for Apple’s new iPhone models. Jefferies analyst Edison Lee has incorporated a $50 hike into his iPhone 17 average selling price forecast.
Meanwhile, Goldman Sachs analysts suggest that potential price increases could continue lifting Apple's overall device average selling price, particularly as the company's smartphone lineup trends toward higher-end pricing.
Goldman analysts said a thinner, lighter design could boost demand, but battery-life tradeoffs may hinder competition with Apple's entry-level models. Analysts estimate the slim device will be priced around $899 — in line with the iPhone 16 Plus — though a potential price increase hasn't been ruled out.
Apple Warns Tariff Costs Could Top $1.1 Billion
The U.S. has repeatedly delayed its harshest tariffs on China, while Apple secured exemptions for smartphones and shifted some iPhone production to India to reduce the burden. Even so, the company incurred $800 million in tariff expenses last quarter and warned the figure could rise to $1.1 billion this quarter.
Despite Cook’s successful management of the tariff issue, Apple may still face the consequences in the form of increased prices for its products. This development could potentially impact Apple’s sales and market positioning, especially as the company is expected to release four new iPhone models this month.
Tariffs May Not Be The Only Reason
If Apple raises iPhone prices this year, tariffs won't be the reason. IDC data shows global smartphone average selling prices are climbing, driven by rising costs of components like camera modules and chips.
Apple could discreetly hike prices by discontinuing its entry-level model, effectively pushing users to pay more for higher storage at a steeper starting price.
Benzinga's Edge Rankings place Apple in the 70th percentile for quality and the 30th percentile for growth, reflecting its strong performance in both areas. Check the detailed report here.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
