Apple raises iPhone Pro starting price in U.S. for first time since 2017

In a significant move, Apple has raised the starting price of its iPhone 17 Pro to $1,099, marking the first price increase for its entry-level Pro model since 2017. This new price is $100 higher than the prior year's iPhone 16 Pro, a change anticipated by analysts and investors alike. Additionally, Apple has introduced a new model, the iPhone 17 Air, which replaces the previous $899 iPhone 16 Plus. The iPhone 17 Air will retail starting at $999, reflecting a shift towards more premium offerings in the lineup. Despite the price increases, Apple's CEO Tim Cook and the company's strategic maneuvers have allowed them to navigate tariff challenges effectively. Much of Apple's supply chain has been restructured to import iPhones from India rather than China, mitigating the impact of higher tariffs. Analysts had predicted this price adjustment, especially as Apple is projected to incur over $1 billion in tariff costs this quarter. In an attempt to soften the effects of the price hikes, Apple emphasized that all new entry-level models now feature 256GB of storage, a notable increase from the 128GB standard in last year’s offerings. The company charges an additional $200 for an upgrade to 512GB on the iPhone 17 Air. Greg Joswiak, Apple's chief marketer, highlighted that the iPhone 17 Pro remains competitively priced at $1,099, comparable to last year's 256GB iPhone 16 Pro. This price adjustment is particularly noteworthy as it is the first time since the launch of the iPhone X that the starting price of an entry-level Pro model has exceeded $999. Meanwhile, Apple has maintained the starting price of its base model, the iPhone 17, at $799, and the premium iPhone 17 Pro Max did not see a price increase either. Other products announced during the event, including the new AirPods priced at $249 and the Apple Watch Series 11 starting at $399, have also retained their previous prices, signaling a careful approach to pricing amidst shifting market conditions.