Apple Keeps iPhone Prices Steady Despite $1.1 Billion Tariff Hit
Apple has managed to hold its iPhone prices steady despite facing steep tariffs on U.S. imports this year, avoiding a potential price hike that many industry watchers expected ahead of the company’s highly anticipated launch event on Tuesday.
The tech giant revealed that it expects to absorb a $1.1 billion impact from tariffs this quarter alone. However, the base prices of its new iPhone models remain largely unchanged compared to last year, offering consumers some relief amid rising global production costs.
In some cases, Apple has even boosted value for buyers, offering more storage at the same or lower price point. For instance, the new iPhone 17 now comes with 256 GB of storage for $799, a $100 drop from last year’s iPhone 16 model with the same capacity.
Here’s a look at the price comparison:
- iPhone 16 (256 GB): $899 → iPhone 17 (256 GB): $799
- iPhone 16 Plus (256 GB): $999 → iPhone Air (256 GB): $999
- iPhone 16 Pro (256 GB): $1,099 → iPhone 17 Pro (256 GB): $1,099
Industry analysts say Apple’s decision to keep prices stable could strengthen its competitive position at a time when consumers are feeling the squeeze of inflation and economic uncertainty.
“The new and much-improved iPhone lineup looks impressive, which puts it in a strong position to cater to different segments,” said Paolo Pescatore, tech analyst and founder of PP Foresight, in a post-event commentary. “Significantly, there is an iPhone for everybody at a reasonable price.”
Apple’s move comes as rival smartphone makers grapple with rising supply chain costs and fluctuating consumer demand, signaling that the company is willing to take a financial hit in the short term to maintain its market dominance.
