Trump Demands US iPhone Manufacturing Amid Tariff Threats

US President Donald Trump has publicly demanded that Apple manufacture its flagship product, the iPhone, within the United States. He threatened to impose a 25% tariff on iPhones not made domestically, extending this potential tariff to other smartphones like Samsung's as well, citing fairness in trade practices.

Despite these political pressures and tariff threats, the price of the iPhone has remained stable over the past five years. However, the upcoming iPhone 17 is widely expected to come with a price increase, driven by new features and possibly the added costs from tariffs.

Historical Pricing Trends of the iPhone

Since its debut in 2007, the standard iPhone has seen four price increases and one price correction. Initially priced at $499 off-contract, the iPhone 3G raised the price to $599, where it stayed for four years. The iPhone 5 increased to $649, and the iPhone 8 launched at $699. Between 2017 and 2019, prices fluctuated between $699 and $749, with the iPhone 11 marking a rare price drop despite adding a second rear camera.

The year 2020 saw the largest jump for the standard iPhone, with the iPhone 12 launching at $829, a $130 increase. Subsequent models, including the iPhone 13 through 16, maintained this price, marking the longest period without a price hike in Apple's history for the standard model.

Price Stability and Inflation in Pro Models

The iPhone Pro models, starting with the iPhone X in 2017, have consistently launched at $999. This price point has not changed for eight years, despite inflation. Adjusted for inflation, the 2017 price equates to approximately $1,298 in 2025 dollars, indicating the Pro line is overdue for a price increase.

The Larger iPhones: Plus, Max, and Pro Max Pricing

Since 2014, Apple has offered larger iPhone variants. The iPhone 6 Plus debuted at $749, $100 more than the standard iPhone 6. This price remained stable for several years. In 2018, Apple introduced the iPhone XS Max at $1,099, a significant $350 increase from the previous Plus models. Recently, Apple raised the entry price for the Pro Max model to $1,199 for the 256GB variant.

Impact of Tariffs and Politics on Future Pricing

Apple CEO Tim Cook revealed that current tariffs could add approximately $900 million in costs to the company, affecting all products, not just the iPhone. This financial pressure, combined with political demands and the natural product lifecycle, suggests that the iPhone 17 will likely be priced higher. Apple may attribute price increases to new features rather than tariffs, but consumers should prepare for higher costs.

In summary, the intersection of geopolitical pressures, manufacturing shifts, and historical pricing trends point to an inevitable increase in iPhone prices with the next generation. Whether driven by tariffs or innovation, the iPhone 17 will mark a new chapter in Apple's pricing strategy.