CUPERTINO, CA – Apple fans planning to upgrade their smartphones may need to budget extra cash as Wall Street analysts predict the upcoming iPhone 17 lineup will carry significantly higher price tags than current models.
Multiple investment firms are forecasting price increases ranging from $50 to $100 across Apple’s next-generation smartphone lineup, which is expected to debut at the company’s annual product event next week. The potential hikes would mark the first time Apple has raised iPhone prices in seven years.
Morgan Stanley analysts said they expect Apple to “modestly” increase iPhone pricing, though not across all models. The investment bank predicts the tech giant will eliminate the entry-level 128-gigabyte storage option for the Pro model, effectively pushing the starting price from $999 to $1,099 for a 256-gigabyte version.
“This strategic move would allow Apple to boost average selling prices without appearing to dramatically increase costs,” one analyst noted in a research report released Thursday.
The pricing strategy extends to Apple’s rumored new iPhone 17 “Air” model, which is expected to replace the current Plus variant with a slimmer design. Bank of America analysts forecast this sleek new device could cost around $999 – about $100 more than the current iPhone 16 Plus, which starts at $899.
Jefferies analysts are taking a broader approach to their price predictions, anticipating a 4% to 5% increase across premium models. They estimate a $50 jump for the Pro, Pro Max, and the anticipated Air model, while leaving the base iPhone largely unchanged to maintain affordability for budget-conscious consumers.
The potential price increases come as Apple grapples with rising manufacturing costs and trade policy uncertainties. Tariff concerns have been particularly challenging for the company, which reported $800 million in tariff-related costs last quarter alone.
Apple has been working to reduce its dependence on Chinese manufacturing by shifting production to other countries like India, but these supply chain adjustments often come with their own cost implications. The company has received some relief through tariff exemptions announced in August, though the long-term impact remains unclear.
Industry observers say the price increases reflect broader trends in the smartphone market, where manufacturers are focusing on premium features and higher-margin products as overall device sales plateau. Apple’s approach of eliminating lower-storage options while adding more expensive variants has become a common strategy to maintain profit growth.
The iPhone 17 lineup is also expected to include significant technological improvements that could justify higher costs, including enhanced camera systems, improved battery life, and new display technologies. However, consumer response to price increases will likely depend on how compelling these new features prove to be.
For Apple shareholders, higher prices could translate to improved margins and revenue growth, especially if demand remains strong despite the increased costs. The company’s loyal customer base has historically shown willingness to pay premium prices for new iPhone features.
Apple has not officially commented on pricing for the iPhone 17 series, maintaining its typical pre-launch secrecy about product details and costs. The official announcement is expected during the company’s September product event, where pricing and availability will be confirmed.
