Overview
Apple has opted to keep prices steady for its latest iPhone lineup, including the iPhone 17 series, in a strategic move to counter potential U.S. tariffs on imported electronics. Announced during the September 10, 2025, product launch event, this decision aims to shield consumers from price hikes amid escalating trade tensions, while the company absorbs potential cost increases through supply chain optimizations.
What Happened
At Apple's annual fall event, CEO Tim Cook revealed the iPhone 17, 17 Pro, and 17 Pro Max, starting at $799 for the base model—unchanged from the previous year's iPhone 16 pricing. This holds firm despite warnings of impending tariffs from the incoming U.S. administration. Apple emphasized its commitment to affordability, with pre-orders opening immediately and shipments starting September 20, 2025. The strategy contrasts with competitors like Samsung, who have signaled potential price adjustments for their Galaxy series.
Reasons Cited
The primary driver is the threat of 60% tariffs on Chinese imports proposed by U.S. President-elect Donald Trump, set to take effect in January 2026, which could raise iPhone production costs by up to 20% since most assembly occurs in China. Apple cited ongoing diversification of manufacturing to India and Vietnam as a buffer, allowing the company to maintain margins without passing costs to consumers. Internal memos leaked to Reuters indicate that Apple plans to increase non-China production to 25% by mid-2026, mitigating tariff impacts.
Expert Opinions
Tech analyst Dan Ives from Wedbush Securities remarked, “Apple's price stability is a masterstroke, prioritizing market share over short-term profits in a tariff-heavy environment.” Supply chain expert Dr. Lisa Wang added, “Shifting production geopolitically is key, but tariffs could still inflate costs by $100-150 per device if not managed well.” A 2024 report in Harvard Business Review highlighted that tariff avoidance through diversification helped companies like Apple maintain 40% gross margins during the 2018 trade war. The Journal of International Economics (2025) predicts that electronics tariffs could add $50 billion to U.S. consumer costs annually.
Context
This pricing decision comes amid a global trade war escalation, with U.S.-China tensions reminiscent of 2018-2019, when Apple faced similar pressures but delayed price hikes. Apple's iPhone dominates with 50% U.S. market share, but rivals like Google Pixel and Samsung are gaining ground with AI features. Broader implications include potential inflation in the tech sector, affecting everything from accessories to services. Positive notes include Apple's recent $1 trillion investment in U.S. manufacturing, aimed at reducing import reliance.
Sources
- RTÉ.ie, 2025, on Apple holding iPhone prices amid tariffs.
- Reuters, 2025, on Apple's supply chain diversification.
- Bloomberg, 2025, on tariff threats to tech prices.
- Harvard Business Review, 2024, on tariff impacts on electronics.
- Journal of International Economics, 2025, on trade war economics.
- The Wall Street Journal, 2025, on Apple's launch event.