Apple expected to unveil new iPhones amid tariff concerns and rising costs
TOI World Desk | TOI Global Desk | Sep 09, 2025, 18:41 IST
Highlight of the story: Apple will announce its new iPhone lineup Tuesday as tariffs and trade tensions raise the possibility of price hikes. While only modest design and performance upgrades are expected, analysts say Apple may increase prices by $50 to $100 to offset import duties.
Apple is set to reveal its latest iPhone lineup on Tuesday as the company faces pressure from U.S. tariffs and questions about whether higher prices will follow.
The new iPhones will be the first released since President Donald Trump returned to the White House and imposed new tariffs aimed at encouraging U.S.-based manufacturing. While Apple CEO Tim Cook has pledged up to $600 billion in U.S. investments to ease tensions, the devices are still assembled in China and India, drawing scrutiny from the administration.
Analysts expect Apple may raise iPhone prices for the first time in five years, citing a 25 percent import duty on devices entering the U.S. Basic models currently start at $800, while premium versions sell for $1,200. Experts predict potential increases of $50 to $100 per model. Google, by contrast, recently kept prices unchanged for its new Pixel phones.
Though the new lineup is not expected to differ dramatically from last year’s iPhone 16, minor updates to battery life, camera quality, and design are anticipated. Reports suggest Apple could also introduce a slimmer “iPhone Air,” echoing its branding for Mac and iPad products.
Last year’s models, marketed as the first designed for artificial intelligence, fell short of sales expectations after Apple delayed key AI features, including improvements to its Siri assistant. These updates are now expected in 2026, according to analysts.
“Apple is reaching a tipping point, and I expect 2026 and 2027 to be pivotal years,” said Thomas Husson, an analyst at Forrester Research.
Despite softer sales and the impact of tariffs, Apple’s stock has rebounded in recent months. The company continues to benefit from a lucrative deal with Google, which pays Apple about $20 billion annually to keep its search engine as the default on iPhones.
The new iPhones will be the first released since President Donald Trump returned to the White House and imposed new tariffs aimed at encouraging U.S.-based manufacturing. While Apple CEO Tim Cook has pledged up to $600 billion in U.S. investments to ease tensions, the devices are still assembled in China and India, drawing scrutiny from the administration.
Analysts expect Apple may raise iPhone prices for the first time in five years, citing a 25 percent import duty on devices entering the U.S. Basic models currently start at $800, while premium versions sell for $1,200. Experts predict potential increases of $50 to $100 per model. Google, by contrast, recently kept prices unchanged for its new Pixel phones.
Though the new lineup is not expected to differ dramatically from last year’s iPhone 16, minor updates to battery life, camera quality, and design are anticipated. Reports suggest Apple could also introduce a slimmer “iPhone Air,” echoing its branding for Mac and iPad products.
Last year’s models, marketed as the first designed for artificial intelligence, fell short of sales expectations after Apple delayed key AI features, including improvements to its Siri assistant. These updates are now expected in 2026, according to analysts.
“Apple is reaching a tipping point, and I expect 2026 and 2027 to be pivotal years,” said Thomas Husson, an analyst at Forrester Research.
Despite softer sales and the impact of tariffs, Apple’s stock has rebounded in recent months. The company continues to benefit from a lucrative deal with Google, which pays Apple about $20 billion annually to keep its search engine as the default on iPhones.