Adapted by:
Ricardo Aguilar
WriterMobile tech writer and analyst. I studied Psychology, but I've been working in the consumer tech field for the last 10 years. Interested in motor projects and new forms of mobility.
Karen Alfaro
WriterCommunications professional with a decade of experience as a copywriter, proofreader, and editor. As a travel and science journalist, I've collaborated with several print and digital outlets around the world. I'm passionate about culture, music, food, history, and innovative technologies.
President Donald Trump’s new tariffs pose a serious challenge to tech giants like Apple—and could push the company to rethink how it sells its most iconic product. A $2,300 iPhone may be unlikely, but raising prices feels more plausible than sacrificing profit margins.
The rumors. Amid rising trade tensions, one long-rumored strategy seems more relevant than ever: a subscription model for the iPhone. Apple has reportedly been developing this option for more than three years. Breaking the $999 psychological barrier won’t be easy for American consumers, but more users are warming to the idea of monthly payments.
Plan A: raise the price of the iPhone. If the question is how tariffs will affect the cost of iPhones, the answer remains uncertain. According to an analysis by Rosenblatt Securities, Apple would need to increase the price of its flagship device by as much as 43% to maintain current profit margins.
In real terms, that would push the base price of the iPhone 17 Pro to more than $1,400, while the iPhone 17 would rise above $1,100—up from $799 plus tax. These prices would disrupt Apple’s strategy and likely alienate buyers.
Plan B: absorb the cost. The second option is to absorb the tariff impact, which would significantly reduce Apple’s historically strong profit margin—around 25%. In this scenario, the math doesn’t work well for Apple. A hybrid strategy seems more viable: absorbing part of the cost while raising prices more gradually. That could soften the blow and help maintain demand.
Plan C: the golden plan. There’s a third option—one that analysts have speculated about for years and that could be tailor-made for Apple: an iPhone subscription. This model aligns with Apple’s broader push to grow its services revenue and lower the barrier to entry for consumers who want the latest iPhone.
What’s new? Technically, this isn’t new for Apple. Through the iPhone Upgrade Program, users can already get an iPhone 16 for $39.50 a month, with the option to upgrade or return the device after 12 months.
An iPhone that’s never really yours. The model resembles a lease. Users pay for the device monthly, receiving benefits like AppleCare+ and interest-free payments through the Apple Card. The option to purchase the phone outright remains, but users can also walk away.
Other companies, including Samsung, offer similar programs. Samsung’s AI Subscription Club program, for example, allows device swaps every 12 months with low monthly payments. In this context, getting the latest iPhone for a few monthly dollars may not sound so far-fetched after all.
Image | Xataka On
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