The iPhone 17 launch is still nine months away, but we already have the first price hike rumor. That’s hardly surprising if you’ve been following iPhone leaks in recent years. We’ve seen iPhone price hike rumors with every generation since the iPhone 14 series.
Some rumors said only the iPhone Pro models would get more expensive, but they turned out to be false. Apple did raise the iPhone 15 Pro Max entry price, moving it to $1,199. But all Apple actually did was to eliminate the 128GB tier. The 256GB price point remained unchanged. iPhone 16 prices are in line with last year’s model, Pro Max included.
The only iPhone price hike we witnessed in recent years concerned specific markets, and it was all due to fluctuations in currency exchange rates. First, Apple raised iPhone prices in the UK, Europe, and other regions for the iPhone 14 series. A year later, it dropped the prices in the same regions. All the while, iPhone prices stayed unchanged in Apple’s home market, the US.
With all that in mind, I’d be tempted to say the iPhone 17 price hike expectations shouldn’t scare anyone, especially this early in the rumor cycle. But what if there’s actual merit this time around?
A few days ago, The Wall Street Journal said the iPhone 17 Air will be cheaper than the iPhone 17 Pro models, not the other way around. Older reports claimed the ultra-thin iPhone might be even more premium than the Pro. Apple could charge more for the handset as a result.
It no longer looks like the iPhone 17 Air will be an “Ultra” type of device. Therefore, a price in line with the $899 iPhone 16 Plus makes more sense.
However, the WSJ did not actually specify price points for any of the iPhone 17 models.
If Apple raises prices across the board by $100 — and I’m speculating here — the Air could start at $999, while the cheapest Pro would cost $1,099. The Air would still be more affordable than Apple’s Pro models, but it would be more expensive than I’d personally want it to be.
Where do these iPhone 17 price hike rumors come from? Well-connected leaker jukanlosreve shared the following quote from Jong Wook Lee, a senior researcher at Samsung Securities Research Center:
Although there were initial expectations that Apple’s iPhone prices would rise this year, prices were unusually not increased. As a result, profit margins have declined since the third quarter of this year. iPhone prices are expected to increase next year.
The leaker speculated that the Galaxy S25, S26, iPhone 17, and iPhone 18 might all get price hikes. Obviously, if the Galaxy S25 and iPhone 17 were to see price hikes, their successors would also be more expensive than the 2024 Galaxy S24 and iPhone 16. Samsung and Apple would not necessarily have to raise prices two years in a row. And I’m not sure customers would stomach such a scenario.
We did see reports from Korea claiming that Samsung will have to raise the Galaxy S25 prices in some markets. It’s not just the weak won that’s to blame. Samsung is using expensive high-end chips from Qualcomm for the Galaxy S25 series, which may be passed on to the consumer.
Apple doesn’t have the same problem. It makes its own high-end chips for the iPhone, iPad, and Mac.
However, iPhone 17 price hikes might be one way to increase revenue while dealing with stagnant demand. Remember that Apple managed to pull off a trick in recent years that no other smartphone vendor could replicate. Apple raised the average selling price of the iPhone without significantly increasing sales. Consumer preference for the iPhone Pro and Pro Max helped Apple get there.
Finally, I’ll note the obvious “price hike” that Apple can pull off this year without it feeling like a real cost increase. Apple could eliminate the 128GB storage tier from the Air and Pro models, just like it did with the Pro Max in 2023. I could see the 256GB iPhone 17 Air and iPhone 17 Pro start at $999 and $1,099, respectively. The base iPhone 17 would still feature 128GB of storage, starting at $799 with carrier offers.
Whatever the case, I’ll most likely buy a 256GB iPhone 17 Air next year. If Apple raises prices, we’ll hear all about it in the coming months as we approach the iPhone 17 launch event.