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Tariffs, Schmariffs! An iPhone 17 Price Hike Is Overdue, Regardless of Trump’s Threats

Commentary: Follow the math, not the tariffs and politics.

US President Donald Trump wants Apple to manufacture the iPhone, its best-selling product, in the US. And on Friday, he threatened to place a 25% tariff on the phone if the company doesn’t make that happen.

«I have long ago informed Tim Cook of Apple that I expect their iPhone’s that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else,» Trump posted on Truth Social. «If that is not the case, a tariff of at least 25% must be paid by Apple to the US.»

Adding uncertainty to his ultimatum, Trump later said the tariff wouldn’t apply to just the iPhone but also to any smartphone made outside the US.

«It would be also Samsung and anybody that makes that product,» Trump told reporters in the White House on Friday. «Otherwise, it wouldn’t be fair.»

Despite tariffs and politics, the price of the iPhone hasn’t changed. But the launch of the rumored iPhone 17 will likely come with a higher price no matter what Trump says or does. Apple is considering a price increase and could attribute the rise to new and updated features instead of tariffs, according to a report by The Wall Street Journal.

Since what Trump touted as «Liberation Day,» the iPhone and how tariffs might affect its price have been main focal points when it comes to this administration’s policies and pronouncements. Apple is the third-largest company in the US, and most of its products are manufactured in China. Clearly, the iPhone’s ubiquity has made it a symbol for the ongoing uncertainty of the US economy and politics.

But whether or not Apple gets taxed with tariffs, the iPhone hasn’t had a price hike in five years and is due for one. Historically, that’s the longest stretch of time the company has gone without an increase since the five years between the iPhone 5 and the iPhone 7, which ended with the iPhone 8 launching at a higher cost. We can learn a lot by looking at how the company has handled earlier price hikes (and a one-time drop) and what that means for the iPhone 17 (it’ll likely cost more).

In terms of my methodology, I grouped iPhone models into a few categories: the standard, the flagships and the behemoths. The standard includes models like the original iPhone, the iPhone 8, the iPhone XR and the iPhone 16. The flagships include variants like the iPhone X, iPhone 11 Pro and iPhone 16 Pro. And the behemoths designation is for phones like the iPhone 6 Plus, iPhone XS Max and iPhone 16 Pro Max. There are other versions that Apple sold, like the iPhone 5C, the SE series, the iPhone Mini line and the current iPhone Plus line, that don’t factor into this analysis. Also, I use the US starting price for each iPhone before any carrier discounts are applied.

Standard iPhone prices

Since its debut in 2007, the standard iPhone has had four price increases and one correction. Many folks might remember paying $199 for the original iPhone, but in reality, the phone cost $499 off-contract. In 2008, Apple raised the price $100 with the launch of the iPhone 3G, to $599, where it would stay for four years. Then in 2012, the iPhone 5 was introduced with a taller, 4-inch screen and a higher, $649 price tag.

Fast-forward to 2017, the 10th anniversary of the iPhone, and the iPhone 8 debuted at a cost of $699, a $50 increase. Every year between 2017 and 2019, the price for the standard iPhone changed. In 2018, the iPhone XR launched at $749. The following year, the iPhone 11 came out, and the price dropped back to $699. And what makes that drop interesting is that the iPhone 11 was the first standard Apple phone with two rear cameras: a wide-angle and ultrawide. Up till then, all other standard iPhone models had only a single rear camera. From 2007 to 2019, when Apple increased prices it was in $50 increments, except between the first and second iPhone models.

Then 2020 happened. It was a wild year for the iPhone, and everyone, because of the pandemic. But Apple managed to launch the iPhone 12, which cost $829, marking the largest increase for the standard iPhone: $130. Subsequent models all had the same price: The iPhone 13, 14, 15 and 16 all cost $829.

If Apple follows its previous pattern, then the standard iPhone is due for a price increase. The last raise was in 2020, five years ago, and Apple has never gone six years without a price hike on the standard model. But will the company slowly raise the price over a few years like it did between the iPhone 7, 8 and XR? Or will it go all in like it did with the iPhone 12?

The standard iPhone is Apple’s most popular, and it’s safe to expect that the iPhone 17 will cost more (and would’ve even if Trump hadn’t been elected). Now we just need to wonder how much tariffs and politics might drive the price up even more.

The flagship: iPhone Pro model prices

Apple hasn’t always had an iPhone Pro variant, but it did starting in 2017 with the launch of the iPhone X, which had a starting price of $999. The phone debuted next to the $699 iPhone 8, making the 8’s $50 increase seem like nothing.

But here’s where things get interesting. Apple has never raised the price on the iPhone Pro model. The iPhone X, XS, 11 Pro, 12 Pro, 13 Pro, 14 Pro, 15 Pro and 16 Pro all cost $999. That’s eight years without a price increase!

What’s even more shocking is when you correct for inflation: the 2017 iPhone X’s $999 price would be $1,298 in 2025, according to the Consumer Price Index Inflation calculator. The iPhone Pro is overdue for a price hike, and expect the iPhone 17 Pro to cost more.

The behemoths: iPhone Plus, Max and Pro Max prices

Since 2014, Apple has sold a «big» version of the iPhone. Some of these were nothing more than a larger version of the standard iPhone with a bigger screen and battery as well as some minor differences, like the iPhone 6 Plus having optical image stabilization on its camera while the iPhone 6 didn’t. But beginning with the iPhone 7 Plus, the larger version started having «pro» features, like a second rear camera and portrait mode.

In terms of pricing, the iPhone 6 Plus debuted at $749, which was $100 more than the iPhone 6. And that $749 price stuck around for the iPhone 6S Plus and 7 Plus. In 2017, Apple had three iPhone models: the $699 iPhone 8, the $749 iPhone 8 Plus (a $50 increase from the 7 Plus) and the $999 iPhone X.

In 2018, Apple launched the $1,099 iPhone XS Max, which I consider the true successor to the initial iPhone Plus line. That means the big iPhone got a $350 increase in a single year, the largest Apple has ever made. I admit some people might not think the XS Max is a follow-up to the Plus and would deem it an entirely new iPhone variant. But this is my commentary.

Like the iPhone Pro, the Max and Pro Max would have the same price for years. In 2023, Apple raised the barrier of entry for the Pro Max model and didn’t offer a $1,099 version of the iPhone 15 Pro Max with 128GB of storage. Instead, you had to pay $1,199 for the 256GB variant, which technically cost the same as the iPhone 14 Pro Max with 256GB of storage.

The iPhone 17 and 17 Pro’s prices

Even without tariffs, it’s safe to assume that the iPhone 17 lineup’s prices will be higher for some models. But when you factor in everything that’s happened this year, it’s hard to gauge just how much the price will go up and whether that’ll affect just one or two models, or apply across the entire iPhone 17 line.

Earlier this year, Apple raised the price on its most affordable model. Though it lacks the SE branding of the previous low-cost iPhone, the iPhone 16E came with a $599 price tag, $170 more than the $429 iPhone SE (2022). 

Apple doesn’t talk about unreleased products or their prices. But we do have an unusual-for-Apple clue as to how these tariffs could affect the company.

«Assuming the current global tariff rates, policies, and applications do not change for the balance of the quarter and no new tariffs are added, we estimate the impact to add $900 million to our costs,» Apple CEO Tim Cook said during a May 1, 2025, quarterly earnings call.

Obviously, that $900 million number wasn’t just for the iPhone, but for all Apple products. And that was three weeks before Trump threatened another tariff aimed purely at the iPhone. But $900 million is a lot for any company to swallow, and eventually that added cost will need to be made up for — unfortunately, that usually means higher prices (even if Apple is pressured by Trump to attribute the increase to «new designs and features.»)

If there’s one thing for certain, we’ll know exactly what those prices will be when Apple launches the next generation of iPhone models at its September event.

Apple didn’t respond to a request for comment.

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Google races to put Gemini at the center of Android before Apple’s AI reboot

Google is using its latest Android rollout to position Gemini as the AI layer across phones, Chrome, laptops and cars.

Google is using its latest Android rollout to make Gemini less of a chatbot and more of an operating layer across the phone, browser, car and laptop, just weeks before Apple is expected to show its own Gemini-powered Apple Intelligence reboot at WWDC.
Ahead of its Google I/O developer conference next week, the company previewed a number of Android updates, including AI-powered app automation, a smarter version of Chrome on Android, new tools for creators, a redesigned Android Auto experience, and a sweeping set of new security features.
Alphabet is counting on Gemini to help Google compete directly with OpenAI and Anthropic in the market for artificial intelligence models and services, while also serving as the AI backbone across its expansive portfolio of products, including Android. Meanwhile, Gemini is powering part of Apple’s new AI strategy, giving Google a role in the iPhone maker’s reset even as it races to prove its own version of personal AI on the phone is further along.
Sameer Samat, who oversees Google’s Android ecosystem, told CNBC that Google is rebuilding parts of Android around Gemini Intelligence to help users complete everyday tasks more easily.
“We’re transitioning from an operating system to an intelligence system,” he said.
As part of Tuesday’s announcements. Google said Gemini Intelligence will be able to move across apps, understand what’s on the screen and complete tasks that would normally require a user to jump between multiple services. That means Android is moving beyond the traditional assistant model, where users ask a question and get an answer, and acting more like an agent.
For instance, Google says Gemini can pull relevant information from Gmail, build shopping carts and book reservations. Samat gave the example of asking Gemini to look at the guest list for a barbecue, build a menu, add ingredients to an Instacart list and return for approval before checkout.
A big concern surrounding agentic AI involves software taking action on a user’s behalf without permissions. Samat said Gemini will come back to the user before completing a transaction, adding, “the human is always in the loop.”
Four months after announcing its Gemini deal with Google, Apple is under pressure to show a more capable version of Apple Intelligence, which has been a relative laggard on the market. Apple has long framed privacy, hardware integration and control of the user experience as its advantages.
Google’s Android push is designed to show it can bring AI deeper into the device experience while still giving users control over what Gemini can see, where it can act and when it needs confirmation.
The app automation features will roll out in waves, starting with the latest Samsung Galaxy and Google Pixel phones this summer, before expanding across more Android devices, including watches, cars, glasses and laptops later this year.
The company is also redesigning Android Auto around Gemini, turning the car into another major surface for its assistant. Android Auto is in more than 250 million cars, and Google says the new release includes its biggest maps update in a decade and Gemini-powered help with tasks like ordering dinner while driving.
Alphabet’s AI strategy has been embraced by Wall Street, which has pushed the company’s stock price up more than 140% in the past year, compared to Apple’s roughly 40% gain. Investors now want to see how Gemini can become more central to the products people use every day.
WATCH: Alphabet briefly tops Nvidia after report of $200 billion Anthropic cloud deal

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Waymo recalls 3,800 robotaxis after glitch allowed some vehicles to ‘drive into standing water’

Waymo issued a voluntary recall of about 3,800 of its robotaxis to fix software issues that could allow them to drive into flooded roadways.

Waymo is recalling about 3,800 robotaxis in the U.S. to fix software issues that could allow them to “drive onto a flooded roadway,” according to a letter on the National Highway Traffic Safety Administration’s website.
The voluntary recall is for Waymo vehicles that use the company’s fifth and sixth generation automated driving systems (or ADS), the U.S. auto safety regulator said in the letter posted Tuesday.
Waymo autonomous vehicles in Austin, Texas, were seen on camera driving onto a flooded street and stalling, requiring other drivers to navigate around them. It’s the latest example of a safety-related issue for the Alphabet-owned AV unit that’s rapidly bolstering its fleet of vehicles and entering new U.S. markets.
Waymo has drawn criticism for its vehicles failing to yield to school buses in Austin, and for the performance of its vehicles during widespread power outages in San Francisco in December, when robotaxis halted in traffic, causing gridlock.
The company said in a statement on Tuesday that it’s “identified an area of improvement regarding untraversable flooded lanes specific to higher-speed roadways,” and opted to file a “voluntary software recall” with the NHTSA.
“Waymo provides over half a million trips every week in some of the most challenging driving environments across the U.S., and safety is our primary priority,” the company said.
Waymo added that it’s working on “additional software safeguards” and has put “mitigations” in place, limiting where its robotaxis operate during extreme weather, so that they avoid “areas where flash flooding might occur” in periods of intense rain.
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Qualcomm tumbles 13% as semiconductor stocks retreat from historic AI-fueled surge

Semiconductor equities reversed sharply after a broad AI-driven advance, with Qualcomm suffering its worst day since 2020 amid inflation concerns and rising oil prices.

Semiconductor stocks fell sharply on Tuesday, reversing course after an extensive rally that had expanded the artificial intelligence investment theme well past Nvidia and driven the industry to unprecedented levels.

Qualcomm plunged 13% and was on track for its steepest single-day decline since 2020. Intel shed 8%, while On Semiconductor and Skyworks Solutions each lost more than 6%. The iShares Semiconductor ETF, which benchmarks the overall sector, fell 5%.

The sell-off came after a key gauge of consumer prices came in above forecasts, and as conflict in Iran pushed crude oil higher—prompting investors to shift away from riskier assets.

The preceding advance had widened the AI opportunity set beyond longtime industry leader Nvidia, which for much of the past several years had largely carried the market to new peaks on its own.

Explosive appetite for central processing units, along with the graphics processing units that power large language models, has sent chipmakers to all-time highs.

Market participants are wagering that the shift from AI model training to autonomous agents will lift demand for additional AI hardware. Among the beneficiaries are memory chip producers, which are raising prices as supply remains tight.

Micron Technology slid 6%, and Sandisk cratered 8%. Sandisk’s stock has surged more than six times over since January.

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