Wall Street Analysts Expect $50 Price Hike for iPhone 17 Pro Models Amid Tariff Pressures

Apple may be preparing to raise the price of some of its upcoming iPhones by $50, according to a new research note from analysts at Jefferies. The increase would apply to the higher end iPhone 17 Pro and Pro Max models expected to launch in September 2025.

The projected 4% to 5% hike is aimed at offsetting increased costs linked to ongoing U.S. tariffs, particularly those applied to Apple products manufactured in China. Jefferies estimates that about 40% of the iPhone 17 supply for the U.S. market will still be assembled in China, making the company vulnerable to import duties that are now beginning to bite.

The iPhone 16 Pro Max currently retails at $1,199. If Apple raises prices by $50 as expected, the iPhone 17 Pro Max could cross the $1,249 mark in the U.S. This would be the first price hike for Pro models since the iPhone X launch in 2017 introduced a $1,000 price tag for the flagship tier.

Tariffs Drive Cost Pressures

The expected price increase comes amid broader cost pressures from trade tensions between the U.S. and China. In its latest earnings call, Apple told investors it was bracing for a $900 million hit from tariffs in the June quarter alone. While the company has been shifting production to India and Southeast Asia, China remains a core manufacturing hub for high-end iPhones.

According to Jefferies, if the cost of building each iPhone 17 rises by $20 to $25 due to tariffs and supply chain adjustments, a $50 retail price bump would only slightly cover the increased overhead. This pricing strategy allows Apple to maintain its profit margins while preparing for greater geopolitical headwinds ahead of the holiday season.

The base model of the iPhone 17 is not expected to be affected by the price hike. Analysts believe Apple will maintain the current price point for the standard iPhone to stay competitive with mid-tier Android alternatives.

Slimmer Model in the Works

Jefferies also noted that the rumored slimmer iPhone variant, which could debut alongside the Pro lineup, may also be included in the price adjustment. While Apple hasn’t officially confirmed this model, several leaks suggest a new ultra-thin iPhone aimed at redefining the premium smartphone aesthetic.

If that model falls into the Pro pricing tier, it could carry a starting price north of $1,199. Apple has typically positioned its Pro line for users seeking advanced camera systems, performance upgrades, and premium materials like titanium and ceramic glass.

Demand Surge Followed by June Cooldown

In April and May 2025, U.S. demand for iPhones spiked as consumers anticipated potential price hikes. That surge in orders fueled in part by fear of inflation and new tariffs may have helped Apple close its fiscal third quarter stronger than expected.

Jefferies believes those “panic purchases” will show up as a boost in the June quarter, which Apple will report this Thursday. But other analysts, including those at UBS, expect demand to have tapered off in June. They forecast a more cautious consumer environment heading into the fall.

UBS also flagged potential softness in iPhone 17 demand due to “upgrade fatigue” and the relatively minor design changes rumored for the new lineup.

Apple’s Pricing Strategy, Is It A Balancing Act?

Apple has a history of navigating price increases carefully. While the company raised prices in some international markets in 2022 and 2023 to reflect currency fluctuations, it has held iPhone pricing steady in the U.S. for several years even as component and labor costs rose.

Raising prices now could be a test of customer loyalty. The iPhone remains Apple’s largest revenue driver, generating more than 50% of the company’s total sales. With premium models accounting for a growing share of shipments, the company appears to be betting that Pro users are willing to absorb the additional cost.

“Apple knows its core customer base values the ecosystem, not just the phone,” said Patrick Moorhead, tech analyst at Moor Insights & Strategy, in a note earlier this year. “They have more flexibility to raise prices at the high end than almost any other brand.”

September Launch Still on Track

Apple typically announces its new iPhone lineup in early September, with retail availability following a week or two later. The iPhone 17 series is expected to stick to that timeline, with all signs pointing to a four-model launch: iPhone 17, 17 Plus, 17 Pro, and 17 Pro Max.

This year’s refresh is rumored to focus on improved AI processing chips, battery efficiency gains, and upgraded camera software. While the design may remain largely unchanged, Apple is reportedly working on enhancing the iOS experience for power users a key reason it may continue emphasizing the Pro segment.

Investors Await Earnings Signal

Apple is scheduled to report its fiscal Q3 earnings this week. Analysts expect strong iPhone sales in the wake of the April to May tariff rush, but investor focus will be on guidance for the next quarter and any hints about pricing strategy.

Shares of Apple (AAPL) closed down 0.79% on Tuesday, underperforming broader tech indices. Wall Street is closely watching how the company communicates its approach to navigating tariffs, cost inflation, and potential softness in premium smartphone demand.

Jefferies remains bullish on the stock in the long term, citing Apple’s brand strength and ability to pass on costs without losing customers. However, the $50 iPhone price hike will likely be a key talking point when Apple unveils its next lineup.