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Will iPhone 17 Cost More? Tariffs and Economy Could Decide

iPhone 17 could see price hikes in 2025 from global tariffs and economic challenges. Get the full breakdown before Apple’s official reveal.

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Will iPhone 17 Cost More? Tariffs and Economy Could Decide
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25 May 2025 1:11 PM IST

As Apple prepares for a September launch of the iPhone 17, analysts are focused on one key question: How will tariffs and production costs influence its price?

Trade duties currently impose a 10 per cent levy on imports from India and a 30 per cent levy on goods from China. Those rates may rise when a tariff pause ends in July and August, sending costs on India-made components from 10 per cent to 26 per cent and China-made parts from 30 per cent to 145 per cent.

Apple has shifted some assembly from China to India, where duties are lower. But with talk of additional 25 per cent duties on iPhones made outside the U.S., experts warn consumers could see sticker prices climb.

A move of production to the U.S. could add labor expenses that push retail prices even higher. Estimates suggest a U.S.-built iPhone could top $3,500.

Based on current iPhone 16 pricing, tariffs alone could add between $60 and $1,554 to the cost of a new model, depending on storage and sourcing. For example, the 128GB iPhone 16 starts at $799, which under a 145 per cent China tariff could rise past $1,950.

Global supply chains source components from multiple countries, making final pricing hard to predict. Apple did not comment on potential tariffs or pricing.

Economic uncertainty also plays a role. Higher interest rates may curb consumer spending and disrupt supply, while inflation could drive Apple to raise its base price for the first time in five years.

If Apple opts to hold the price steady, analysts say the company could offset costs by boosting fees for services such as music, news and data plans.

Older iPhone models may also see price adjustments. If demand for the iPhone 16 spikes when the iPhone 17 lands, resale values could rise, making secondhand devices more costly.

Industry watchers advise prospective buyers to monitor leaks and prepare for price alerts as the September release approaches.

Until Apple confirms details on the iPhone 17 price, consumers must weigh tariff trends, production shifts and economic forecasts when budgeting for the next Apple flagship.

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