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ZDNET’s key takeaways
- Apple simply launched its iPhone 17 lineup.
- The smartphones had been $100 increased than their predecessors.
- Analysts decide whether or not tariff fears performed an element.
Whereas folks from across the globe tuned into Apple’s launch occasion this week to catch a glimpse of the corporate’s newest smartphones, eyes had been additionally on the units’ costs.
The iPhone 17 lineup marked Apple’s first launch because the Trump administration initially introduced rounds of tariffs in opposition to worldwide commerce companions within the spring. Though the launch occasion didn’t point out tariffs, folks had been fast to note what, at face worth, appeared like a $100 worth hike from the previous 12 months.
Additionally: Every iPhone 17 model compared: Should you buy the base model, Air, Pro, or Max?
Nevertheless, a fast have a look at the specs and a few conversations with analysts rapidly knowledgeable me that the subject is a little more advanced than it appears. Can the value hike be chalked as much as tariffs? Was there even a worth hike? Here is what we all know.
The $2,300 iPhone
As a result of tariffs impose increased costs on items imported into the US, firms importing elements or units from abroad pay increased costs and usually offset that price by elevating the costs of the objects for shoppers. This instantly made folks involved about their tech units, particularly Apple merchandise.
Additionally: Buy the iPhone 16 or wait for iPhone 17? My advice after years of phone reviews
Throughout the peak of tariff fears, a headline a few possible $2,300 iPhone circulated. The Reuters article that originated from mentioned tariffs might trigger as a lot as a 43% enhance on units, which might elevate the $1,599 worth of the iPhone 16 Professional to $2,300. In consequence, after publication, people rushed to buy phones, in accordance with reporting from Bloomberg. Nevertheless, with this week’s launch, they cautiously appeared to see if a large worth hike would happen, and, spoiler alert, it did not.
The brand new costs and what they mirror
Apple launched its new units consistent with expectations. I’ve included the desk under to offer you a greater thought of how the newly introduced merchandise evaluate to final 12 months’s.
iPhone 16 costs | iPhone 17 costs | |
Commonplace | $699 | $799 |
Air | – | $999 |
Plus | $799 | – |
Professional | $999 | $1,099 |
Professional Max | $1,199 | $1,199 |
When evaluating the value will increase, there are some nuances to think about. For the bottom mannequin, that holds true. Nevertheless, it’s troublesome to check the iPhone 16 Plus’ worth with that of the iPhone 17 Air as they’re totally different telephones with totally different type components, supplies, and elements.
Anthony Scarsella, analysis director for cellphones at analysis agency IDC, highlighted that the iPhone 17 Air’s 256GB of storage would put it extra consistent with the iPhone 16 Plus 256GB, which retailed for the next worth than the iPhone Air at launch.
“The 17 Air will fill the $999 spot. Trying on the Air in comparison with the Plus, the 256GB Plus was $1029, and the Air $999,” mentioned Scarsella.
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The identical logic holds true for the iPhone 17 Professional. At a look, when evaluating it to the beginning worth for the iPhone 16 Professional, it might appear to be it’s $100 dearer. Nevertheless, whenever you take a more in-depth have a look at the storage choices, the iPhone 16 Professional began at 128GB, whereas the iPhone 17 Professional begins on the storage stage above at 256GB. The iPhone 16 Professional 256GB and the iPhone 17 Professional 256GB are literally the identical worth.
“It’s value noting that the value enhance for the Professional mannequin was supported by a doubling of the bottom storage, from 128 GB for the iPhone 16 Professional to 256 GB for the brand new iPhone 17 Professional,” mentioned Paolo Pescatore, an analyst protecting telcos, media, and expertise markets.
As my colleague and smartphone skilled Kerry Wan jogged my memory, the price of growing storage for firms is not that steep. With this in thoughts, it’s doable that extra than simply storage was thought-about in pricing choices. When addressing the value hikes, Ranjit Atwal, senior director analyst at analysis agency Gartner, did not rule out tariffs altogether.
“Parts primarily, however tariffs could also be masked with each storage and reminiscence will increase,” Atwal mentioned.
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