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ZDNET’s key takeaways
- Apple just launched its iPhone 17 lineup.
- The smartphones were $100 higher than their predecessors.
- Analysts determine whether tariff fears played a factor.
While people from around the globe tuned into Apple’s launch event this week to catch a glimpse of the company’s latest smartphones, eyes were also on the devices’ prices.
The iPhone 17 lineup marked Apple’s first release since the Trump administration initially announced rounds of tariffs against international trade partners in the spring. Although the launch event did not mention tariffs, people were quick to notice what, at face value, seemed like a $100 price hike from the past year.
Also: Every iPhone 17 model compared: Should you buy the base model, Air, Pro, or Max?
However, a quick look at the specs and some conversations with analysts quickly informed me that the topic is a bit more complex than it seems. Can the price hike be chalked up to tariffs? Was there even a price hike? Here’s what we know.
The $2,300 iPhone
Because tariffs impose higher prices on goods imported into the US, companies importing parts or devices from overseas pay higher prices and typically offset that cost by raising the prices of the items for consumers. This immediately made people concerned about their tech devices, especially Apple products.
Also: Buy the iPhone 16 or wait for iPhone 17? My advice after years of phone reviews
During the peak of tariff fears, a headline about a possible $2,300 iPhone circulated. The Reuters article that originated from said tariffs could cause as much as a 43% increase on devices, which would raise the $1,599 price of the iPhone 16 Pro to $2,300. As a result, after publication, people rushed to buy phones, according to reporting from Bloomberg. However, with this week’s launch, they cautiously looked to see if a massive price hike would take place, and, spoiler alert, it didn’t.
The new prices and what they reflect
Apple launched its new devices in line with expectations. I’ve included the table below to give you a better idea of how the newly announced products compare to last year’s.
|
iPhone 16 prices |
iPhone 17 prices |
|
|
Standard |
$699 |
$799 |
|
Air |
– |
$999 |
|
Plus |
$799 |
– |
|
Pro |
$999 |
$1,099 |
|
Pro Max |
$1,199 |
$1,199 |
When evaluating the price increases, there are some nuances to consider. For the base model, that holds true. However, it is difficult to compare the iPhone 16 Plus’ price with that of the iPhone 17 Air as they are different phones with different form factors, materials, and components.
Anthony Scarsella, research director for mobile phones at research firm IDC, highlighted that the iPhone 17 Air’s 256GB of storage would put it more in line with the iPhone 16 Plus 256GB, which retailed for a higher price than the iPhone Air at launch.
“The 17 Air will fill the $999 spot. Looking at the Air compared to the Plus, the 256GB Plus was $1029, and the Air $999,” said Scarsella.
Also: iOS 26 update is coming soon – how to download it (and which iPhones support it)
The same logic holds true for the iPhone 17 Pro. At a glance, when comparing it to the starting price for the iPhone 16 Pro, it may look like it is $100 more expensive. However, when you take a closer look at the storage options, the iPhone 16 Pro started at 128GB, while the iPhone 17 Pro starts at the storage level above at 256GB. The iPhone 16 Pro 256GB and the iPhone 17 Pro 256GB are actually the same price.
“It is worth noting that the price increase for the Pro model was supported by a doubling of the base storage, from 128 GB for the iPhone 16 Pro to 256 GB for the new iPhone 17 Pro,” said Paolo Pescatore, an analyst covering telcos, media, and technology markets.
As my colleague and smartphone expert Kerry Wan reminded me, the cost of increasing storage for companies isn’t that steep. With this in mind, it is possible that more than just storage was considered in pricing decisions. When addressing the price hikes, Ranjit Atwal, senior director analyst at research firm Gartner, didn’t rule out tariffs altogether.
“Components mainly, but tariffs may be masked with both storage and memory increases,” Atwal said.
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