Apple's iPhone 17 Pro $50 pricing increase strategy won't matter to half of buyers

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There have been rumors that Apple will try to mask tariff-induced price-hikes by doubling the iPhone 17 Pro base storage. This might be a good idea, considering that half of the iPhone buyers pay more for storage already.

Stacked black and white smartphones with triple camera setups, against a gradient blue background.
iPhone 17 Pro render



Apple is expected to raise the iPhone 17 Pro's starting price by $50 to $1,049 while replacing the 128GB base model with 256GB. However, about half of buyers already pay for more storage, so the change may not affect their cost.

Leaker Instant Digital, posting on Chinese social media, linked the rumored price increase to the current 30% tariff rate. Doubling the base storage could help Apple present the change as an upgrade rather than just a cost adjustment.

Apple used the same approach in September 2023 with the iPhone 15 Pro Max. That model launched without a 128GB option and started with 256GB.

During the unveiling, Apple highlighted that the price matched 2022's 256GB tier. That effectively reframed a higher base cost as a value boost.

What CIRP data says about storage habits



Consumer Intelligence Research Partners (CIRP) reports that 48% of U.S. iPhone buyers upgraded from base storage in the twelve months ending June 2025. CIRP says this is down from 2024, but the past three years' figures aren't drastically different.

The data comes from surveys. Apple doesn't release detailed storage sales, so the change isn't significant.

Bar chart shows percentages: 2023 at 50%, 2024 at 53%, 2025 at 48%. CIRP logo in top right corner.
U.S. iPhone storage upgrades for the 12 months ending each June. Image credit: CIRP



For the half of customers already buying higher storage tiers, the new base configuration won't change what they spend. The benefit is mainly for buyers who stick with base storage and will now get more capacity by default.

Why combine a price change with more storage



Analysts have tied the $50 increase to tariffs on iPhones imported from China. Boosting storage at the base level lets Apple frame the change as better value rather than just a price hike.

More generous base storage could reduce the number of customers buying the most expensive configurations. Those models are among Apple's most profitable upgrades.

If that happens, the company may look to services like iCloud+ to capture more storage-related revenue. Apple will announce the iPhone 17 lineup in September 2025, presenting higher base storage and new pricing to manage tariffs and customer perception.



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Comments

  • Reply 1 of 2
    ddawson100ddawson100 Posts: 560member
    Price increases will make a difference but Apple's always done an amazing job of pushing up that ASP. I think what's going to make people pay attention is how they handle Siri. I really hope to hear something about that when they release the iPhone 17.
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  • Reply 2 of 2
    Appleishappleish Posts: 780member
    Apple may have dodged the bulk of tariffs for now, but they are just getting into the economic ecosystem. Gonna be ugly in a few months. The first signs of the inevitable Republican president recession have started showing up. Save your cash and spend as little as possible to prepare.
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