Trump’s tariffs don’t affect Apple’s pricing for new iPhone models

Wall Street was watching to see if Apple would raise the price of iPhones or look for other ways to offset the costs of the tariffs, like raising the price of iPhone versions with more storage.

On Tuesday, the company unveiled an improved line of new iPhones, including a thinner iPhone Air, and kept prices unchanged despite U.S. President Donald Trump’s tariffs. Which have hurt the company’s profits. The iPhone Air will start at $999 and feature a high-density battery and an all-new processor.

At the company’s yearly product introduction event, the model was the main attraction. CEO Tim Cook declared, «We’re taking the biggest leap in iPhone history.» It was dubbed the strongest iPhone to date by Apple. It will make use of the A19 Pro CPU chip, which the company claims has been tuned for improved performance and power efficiency to support the device’s thinner battery. Samsung and other rivals currently sell phones that are praised for having incredibly slim profiles.

The base iPhone 17 with 256 gigabytes will retail for $799, which is the same price as the iPhone 16 model but has half as much storage. Similar to the previous year’s model with the same storage capacity, the iPhone 17 Pro will start at $1,099 for a 256-gigabyte model. However, it will not be available as a lower-capacity phone, which the iPhone 16 Pro sold for $999.

Additionally, Apple did not increase the cost of the new AirPods Pro 3 or the watch models.

The prices show that, despite its prediction that the tariffs would cost it more, Apple was prepared to pay for them in order to compete with domestic Chinese rivals, Samsung, and Google.

Following the company’s announcement of smartphone price, Apple’s stock dropped 1.6%.