iPhone launch day: Prices may increase for first time in five years

Apple is set to unveil its new iPhone lineup on Tuesday, as the global trade war has cast a shadow over the company's annual event, with speculation of price hikes and a slew of other issues.

The new iPhones are the first to be unveiled since President Donald Trump imposed tariffs on imports. The Trump administration says the move is aimed at bringing overseas manufacturing back to the US, but the policy has put Apple CEO Tim Cook in a difficult position.

If Apple sticks to its 2007 naming convention, the new models will be called ‘iPhone 17,’ but the company recently changed the name of its iOS system. At its June developer conference, Apple announced that the new operating system would be called ‘iOS 26,’ a nod to the upcoming year.

Despite the US's push, new iPhones are still being manufactured in China and India. Trump and Commerce Secretary Howard Latnick have repeatedly insisted that iPhones be made in the United States, but experts say that would not only take years but could also double or triple the price.

Apple CEO Tim Cook promised to invest $500 billion in the United States to appease President Trump, later increasing it to $600 billion. He also gifted Trump a statue of himself standing on a 24-karat gold base. As a result of these measures, Apple was spared the most severe tariffs, but iPhones imported into the United States still face a 25 percent duty.

Analysts say that this time, Apple may raise prices for the first time in five years to protect its profit margins. Since 2020, the company has priced the basic iPhone at $800 and the most expensive model at $1,200, but it is now likely that the new models could increase by $50 to $100. This decision will come at a time when Google has not increased the prices of its recent Pixel smartphones.

As for features, no major changes are expected this time either. The new iPhones will have improved camera and battery performance and a slight change in design. The most significant new addition could potentially be an ultra-thin model called the ‘iPhone Air,’ a name Apple already uses for its lightweight and sleek Mac and iPad devices.

However, limited progress in artificial intelligence features has raised questions about Apple’s performance. “Apple has reached a critical juncture, and I think 2026 and 2027 will be decisive years for it,” says Forrester Research analyst Thomas Husson.