To compensate for higher production costs, Apple is expected to increase the price of the iPhone 17 in a few months. Samsung smartphones could suffer the same fate.
The iPhone 17 series is highly anticipated this year, with a major overhaul of iOS, a new design, and hopefully new AI features. But Apple's next-generation phones are expected to cost even more than previous models. Be warned, prices may increase this year.
That's what analyst firm Counterpoint Research predicts. “Apple and Samsung's growth projections have been revised downward as cost increases are expected to be passed on to consumers, hurting demand, despite some easing of the tariff burden compared to previous worst-case scenarios,” the experts explain. In other words, production costs have increased, which will be reflected in the prices of iPhones and Samsung smartphones, hurting sales for both manufacturers.
A more expensive iPhone 17, but not necessarily fewer sales for Apple
The report explains that North America and China are not expected to experience growth this year in the smartphone market. The former due to uncertainty surrounding customs duties in the United States, the latter due to a weaker-than-expected market reaction to the government's subsidy program. Europe, for its part, is expected to show sluggish growth of around 1%, with the Middle East driving the market upwards with a forecast increase of 6% in sales.
“All eyes are on Apple and Samsung because of their exposure to the US market. While tariffs have played a role in our forecast revisions, we are also factoring in lower demand, not only in North America, but also in Europe and parts of Asia,” says Liz Lee, a Counterpoint executive.
Despite this expected iPhone price increase, Apple is expected to see sales grow 3% this year, the same as realme, and just behind Xiaomi and Motorola, at 4% each. The best outlook is for Huawei, which is expected to achieve double-digit growth (11%).
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