Will the iPhone 17 Pro Cost More? How Apple Might Dodge Tariff Bombs

Tariffs, Trump, and Tricky Pricing: Can Apple Keep iPhone 17 Pro Prices Stable?
As the 2024 U.S. election looms, Apple faces a familiar headache: potential tariff spikes under a possible Trump administration. While recent pauses offer temporary relief, Morgan Stanley analysts warn Apple can’t rely on political whims. Instead, the tech giant may deploy clever pricing tactics and production shifts to avoid passing costs to consumers. How? Let’s unpack the possibilities.

🌍 The Tariff Tinderbox: Why iPhone Prices Hang in the Balance

• 25% Tariff Threat: Under Trump’s proposed plan, iPhones made in China could face 125% tariffs—up from 0% today.
• Profit Shield Strategy: Apple’s gross margins on 1TB iPhones are 10-15% higher than base models, per Morgan Stanley. Pushing users toward pricier storage tiers could absorb tariff hits.
• India’s iPhone Factory Race: India currently produces 30-40M iPhones annually but needs to triple output to meet U.S. demand (66M units/year).
• The iPhone 15 Pro Max Playbook: In 2023, Apple raised the starting price to $1,199 (256GB) while claiming “no increase” by comparing it to 2022’s 128GB model.

✅ Apple’s Escape Routes: Storage, India, and Longer Upgrades

1. The Storage Upsell Gambit ✅
By emphasizing higher-storage iPhones (256GB+), Apple could offset tariffs through fatter margins. Example: If 25M U.S.-bound iPhones come from China at 125% tariffs, focusing on premium models might halve the $17B tariff bill.

2. India’s Manufacturing Surge ✅
Apple aims to make 25% of iPhones in India. With 18-28M export-ready units already, scaling to 40M/year would reduce reliance on Chinese production—but requires 12+ months.

3. Stretching Upgrade Cycles ✅
Extending Apple Card installment plans from 24 to 36 months could lower monthly payments, masking price hikes. Combined with aggressive trade-in deals, this keeps iPhones “affordable” psychologically.

⚠️ The Obstacles: Why It’s Not That Simple

• 🚧 India’s Capacity Crunch: Ramping production from 40M to 66M units/year demands unprecedented speed—Morgan Stanley doubts it’ll happen in 6-12 months.
• 🚧 Geopolitical Roulette: Trump could impose India tariffs too. “No one is safe,” warns Morgan Stanley.
• 🚧 Consumer Pushback: If base iPhone 17 Pro jumps to $1,299 (vs. $999 today), even storage upsells may not soften the blow.

🚀 Final Verdict: A High-Stakes Balancing Act
Apple’s best shot combines three moves: ✅ Ramp India output, ✅ Push 512GB/1TB models, and ✅ Lock users into longer carrier deals. Success depends on:

• 📈 India hitting 50M+ iPhones/year by late 2025
• 📈 30% of buyers opting for 512GB+ storage
• 📈 Avoiding new India tariffs

If all goes right, your iPhone 17 Pro might still start at $999—but you’ll pay more to “get enough storage.” Is this fair play or price manipulation? Sound off below!

Let us know on X (Former Twitter)

Sources: William Gallagher. Renders of a possible iPhone 17 Pro design, 2025-04-10. https://appleinsider.com/articles/25/04/10/apples-high-storage-prices-may-be-key-to-mitigating-iphone-17-pro-price-rises