Will Trump's tariffs affect iPhone 17 prices? Apple has a plan to stop iPhone price hike

As anticipation builds for the upcoming iPhone 17, Apple is quietly manoeuvring behind the scenes to counter mounting cost pressures brought on by rising international tariffs. According to recent reports, the tech giant is implementing aggressive cost-cutting strategies, including renegotiating with suppliers in a bid to avoid passing steep price hikes onto consumers.

Tariffs Threaten to Drive Up Prices

The US has imposed or threatened tariffs on Apple products assembled outside the US, in particular from China and India. President Trump has explicitly warned of a 25% tariff on iPhones not manufactured domestically.

These tariffs are expected to drive iPhone 17 prices up by 4-6% globally, according to analyst reports. In the US, base model prices may start at $899, with higher-end models seeing even steeper increases, depending on the final tariff rates and component sourcing.

Apple also noted in its May earnings call that tariffs are already costing the company an estimated $900 million per quarter.

Strategic Supplier Negotiations Underway

In an effort to combat these cost pressures, Apple has launched a major initiative to reduce its bill of materials for the iPhone 17, specifically targeting the most expensive components.

Apple is in active discussions with display manufacturers, including Samsung Display, LG Display, and BOE, requesting significant reductions in OLED panel costs, as per a recent report by Korean outlet The Bell, spotted by BGR. These advanced displays account for more than 10% of total production costs.

Apple has reportedly secured price cuts from LG Display, while Samsung remains in negotiations. The company is also seeking reductions from LG Innotek, which supplies advanced camera modules for the Pro models.

To maintain leverage, Apple is also reportedly exploring deals with alternative suppliers like BOE for key parts should current partners fail to meet its pricing expectations.

These supplier negotiations are a standard annual procedure at Apple, but this year’s talks stand out for the scale of the discounts being pursued, a reflection of rising economic pressures in key global markets.

Production Pivot to India

Apple has massively expanded iPhone assembly in India to mitigate tariff exposure, with production surging 53% year-on-year during H1 2025 and exports reaching nearly 24 million units. The company aims to produce 60 million iPhones in India in 2025, up from 42 million the previous year, intending for most US-bound iPhones to be India-made by 2026.

In the run-up to new US tariff deadlines in June 2025, Apple airlifted tens of millions of iPhones from India and China to American warehouses to avoid potential surcharges. This emergency logistical effort allowed the company to stockpile devices at pre-tariff rates, buying some time to manage the transition without affecting pricing in the immediate term.

How Much Will the iPhone 17 Cost?

While Apple has so far remained tight-lipped about pricing plans for the iPhone 17, observers believe the company’s multi-pronged effort to cut costs signals an intent to keep consumer prices stable, at least at launch.

Rather than raising prices outright, Apple may restructure pricing by:

• Increasing base storage across models to justify higher prices,
• Discontinuing lower-tier variants, or
• Framing any cost changes as linked to new technologies and innovations, including rumoured AI-specific chip enhancements and upgraded camera features.

Insiders claim the message will be about "value enhancement" rather than "price increase", which is a tactic Apple has used before in similar market conditions.

Region-wise iPhone 17 expected pricing

• India: ₹79,900
• United States: $899
• United Arab Emirates (UAE): AED 3,799
• United Kingdom: ~£849

Whether these efforts will be enough to entirely shield buyers from price increases remains to be seen when Apple officially pulls back the curtain on the iPhone 17 series later this year in September.