iPhone 17 Pro Models to See $50 Price Hike Amid Rising Costs and Tariffs [Report]

A new investor note from Jefferies claims Apple is planning a $50 price hike for its iPhone 17 Slim, Pro, and Pro Max models. The increase is reportedly needed to offset rising component costs and the impact of new tariffs from China.

Driving up the cost of the iPhone 17 are several key upgrades. The move to 12GB of RAM across all four models, a new steel battery case for the base and Slim versions, and the inclusion of an A19 Pro chip are all expected to raise the average bill of materials by $20-25.

Tariffs are also part of the equation. The note calculates that a 20% tariff from China on the 40% of U.S.-bound iPhones made there would add about 8% to the cost. A global price increase of around $25 would be needed just to offset that, making the proposed $50 hike a necessary measure to cover all the new expenses.


To help soften the blow, Apple is accelerating its production shift to India. According to the note, Apple plans to produce 18% of its iPhone 17 models in India during the second half of 2025, with that figure rising to 30-35% by the second half of 2026. The plan reportedly includes producing a portion of every model in India, including the upcoming foldable model.

The shift isn't without its own hurdles, however. The cost of assembling an iPhone in India is currently 2% to 5% higher than in China due to lower yield rates. There are also added logistics costs, as most components are still shipped from China. Jefferies estimates that the tariff difference between China and the U.S. would need to be at least 10% to make the move financially justifiable on its own, suggesting that supply chain security and local requirements are also key drivers for Apple's expansion. This aligns with other reports indicating Apple's goal is to have most U.S.-bound iPhones made in India by 2026.

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