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ZDNET's cardinal takeaways
- Apple conscionable launched its iPhone 17 lineup.
- The smartphones were $100 higher than their predecessors.
- Analysts find whether tariff fears played a factor.
While group from astir nan globe tuned into Apple's motorboat arena this week to drawback a glimpse of nan company's latest smartphones, eyes were besides connected nan devices' prices.
The iPhone 17 lineup marked Apple's first merchandise since nan Trump management initially announced rounds of tariffs against world waste and acquisition partners successful nan spring. Although nan motorboat arena did not mention tariffs, group were speedy to announcement what, astatine look value, seemed for illustration a $100 value hike from nan past year.
Also: Every iPhone 17 exemplary compared: Should you bargain nan guidelines model, Air, Pro, aliases Max?
However, a speedy look astatine nan specs and immoderate conversations pinch analysts quickly informed maine that nan taxable is simply a spot much analyzable than it seems. Can nan value hike beryllium chalked up to tariffs? Was location moreover a value hike? Here's what we know.
The $2,300 iPhone
Because tariffs enforce higher prices connected equipment imported into nan US, companies importing parts aliases devices from overseas salary higher prices and typically offset that costs by raising nan prices of nan items for consumers. This instantly made group concerned astir their tech devices, particularly Apple products.
Also: Buy nan iPhone 16 aliases hold for iPhone 17? My proposal aft years of telephone reviews
During nan highest of tariff fears, a header astir a possible $2,300 iPhone circulated. The Reuters article that originated from said tariffs could origin arsenic overmuch arsenic a 43% summation connected devices, which would raise nan $1,599 value of nan iPhone 16 Pro to $2,300. As a result, aft publication, people rushed to bargain phones, according to reporting from Bloomberg. However, pinch this week's launch, they cautiously looked to spot if a monolithic value hike would return place, and, spoiler alert, it didn't.
The caller prices and what they reflect
Apple launched its caller devices successful statement pinch expectations. I've included nan array beneath to springiness you a amended thought of really nan recently announced products comparison to past year's.
iPhone 16 prices | iPhone 17 prices | |
Standard | $699 | $799 |
Air | – | $999 |
Plus | $799 | – |
Pro | $999 | $1,099 |
Pro Max | $1,199 | $1,199 |
When evaluating nan value increases, location are immoderate nuances to consider. For nan guidelines model, that holds true. However, it is difficult to comparison nan iPhone 16 Plus' value pinch that of nan iPhone 17 Air arsenic they are different phones pinch different shape factors, materials, and components.
Anthony Scarsella, investigation head for mobile phones astatine investigation patient IDC, highlighted that nan iPhone 17 Air's 256GB of retention would put it much successful statement pinch nan iPhone 16 Plus 256GB, which retailed for a higher value than nan iPhone Air astatine launch.
"The 17 Air will capable nan $999 spot. Looking astatine nan Air compared to nan Plus, nan 256GB Plus was $1029, and nan Air $999," said Scarsella.
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The aforesaid logic holds existent for nan iPhone 17 Pro. At a glance, erstwhile comparing it to nan starting value for nan iPhone 16 Pro, it whitethorn look for illustration it is $100 much expensive. However, erstwhile you return a person look astatine nan retention options, nan iPhone 16 Pro started astatine 128GB, while nan iPhone 17 Pro starts astatine nan retention level supra astatine 256GB. The iPhone 16 Pro 256GB and nan iPhone 17 Pro 256GB are really nan aforesaid price.
"It is worthy noting that nan value summation for nan Pro exemplary was supported by a doubling of nan guidelines storage, from 128 GB for nan iPhone 16 Pro to 256 GB for nan caller iPhone 17 Pro," said Paolo Pescatore, an expert covering telcos, media, and exertion markets.
As my workfellow and smartphone master Kerry Wan reminded me, nan costs of expanding retention for companies isn't that steep. With this successful mind, it is imaginable that much than conscionable retention was considered successful pricing decisions. When addressing nan value hikes, Ranjit Atwal, elder head expert astatine investigation patient Gartner, didn't norm retired tariffs altogether.
"Components mainly, but tariffs whitethorn beryllium masked pinch some retention and representation increases," Atwal said.
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