Business and Finance
Apple Has Dodged Trump’s Tariffs, But Iphone Prices Could Still Rise.
Apple may soon pass tariff-related costs on to customers, even after CEO Tim Cook’s careful navigation of trade tensions with President Donald Trump.
Cook was praised last month for securing exemptions from chip tariffs by announcing Apple’s $100 billion U.S. investment, bringing its total pledge to $600 billion over five years. At the White House event, Trump celebrated Apple’s commitment to “American jobs and innovation,” while Cook presented him with a gold and glass plaque.
So far, iPhones haven’t faced major price hikes. However, other consumer goods like shoes, clothing, coffee, and gaming consoles have seen increases tied to tariffs. Analysts believe Apple could follow suit when it unveils the iPhone 17 lineup this week.
Wall Street estimates suggest a $50 bump in the average iPhone price. Goldman Sachs also predicts Apple’s trend toward premium models could push selling prices higher over time.
Apple is expected to launch four iPhone 17 models, with the entry-level device starting near last year’s $829 price. The rumored replacement for the underperforming iPhone Plus—a slimmer, lighter model—may come in at around $899. While that undercuts Samsung’s Galaxy Edge at $1,099, tradeoffs such as reduced battery life may challenge demand.
Whether or not prices rise this year, analysts agree that Apple’s strategy of balancing tariffs, premium models, and consumer demand will remain under close watch.
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Source: Kif Leswing, CNBC