Apple Holds iPhone Prices Steady Despite Tariff Worries

Intermediate | September 24, 2025

✨ 혼자서 기사를 소리 내어 읽거나 튜터를 따라 각 단락을 반복해서 읽으세요. 레벨...

The Price Decision in Context

On September 9, 2025, Apple unveiled its latest iPhone line, including the new iPhone 17, iPhone 17 Pro, and a slimmer model called iPhone 17 Air, during its annual product event. Despite rising costs from U.S. tariffs under President Donald Trump, Apple decided not to raise prices for most models. This choice made headlines as Apple holds iPhone prices steady despite heavy tariff pressure. (Reuters)

Analysts estimate the company will absorb over US$1 billion in tariff-related costs this fiscal quarter. This reflects Apple’s effort to protect customers from higher costs and maintain its strong brand image.

What’s New in the Lineup

The iPhone 17 Air

One of the biggest announcements was the iPhone 17 Air, Apple’s new slim model measuring only 5.6 mm thick. Despite its thin size, it features the same A19 Pro processor found in the Pro models, along with Apple’s new N1 networking chip and C1X modem. The starting price is US$999. (Reuters)

Other Models

The base iPhone 17 remains priced at US$799 for the 256 GB version. This is the same price as the previous year, though customers now get more storage at that level. The iPhone 17 Pro starts at US$1,099, again holding steady with last year’s pricing. Apple also removed the 128 GB option from some models, signaling a shift to larger default storage. (Reuters)

Why Prices Stayed the Same

Tariff Pressure

Apple is facing significant tariff-related costs, but instead of passing them directly to customers, the company is absorbing the expense. By doing so, Apple holds iPhone prices steady and maintains its competitiveness in the smartphone market, particularly against rivals like Samsung, Google, and major Chinese manufacturers. (Reuters)

Market and Brand Strategy

By holding the line on prices, Apple is betting that customers will feel more confident upgrading to the new models. Stable pricing may also encourage stronger holiday sales, which are critical for the company’s bottom line. Analysts suggest that if Apple had raised prices, demand might have fallen in key global markets. (Reuters)

Risks and Reactions

Investors were cautious about Apple’s decision. Shares fell about 1.5% after the announcement, as some worried that absorbing higher costs could cut into the company’s profit margins. While the move benefits consumers in the short term, critics argue that it may pressure Apple’s long-term financial performance if tariffs continue or increase.

Vocabulary

Tariff (noun) – a tax placed on imported goods.
Example: Apple absorbed over $1 billion in tariff costs instead of raising prices.
Absorb (costs) (verb) – to take on expenses rather than passing them to someone else.
Example: Apple is absorbing costs instead of increasing iPhone prices.
Competitor (noun) – a company or product that competes with yours.
Example: Apple wants to remain competitive against Samsung and Google.
Processor (noun) – the chip inside a device that runs programs.
Example: The iPhone 17 Air uses an A19 Pro processor.
Slim (adjective) – thin in shape or design.
Example: The iPhone 17 Air is very slim at 5.6mm.
Storage (noun) – space inside a device for files, photos, apps.
Example: Apple removed some 128 GB storage options.
Model (noun) – a version of a product.
Example: The iPhone 17 and iPhone 17 Pro are different models.
Holiday season (noun) – the period around Christmas and end-of-year when many people shop.
Example: Apple hopes the new iPhones will sell well during the holiday season.
Profit margin (noun) – the difference between the cost of making something and its selling price.
Example: The tariffs threaten Apple’s profit margin if not managed.
Upgrade (verb) – to replace something with a newer or better version.
Example: Some customers delay upgrades when prices rise.

Discussion Questions (About the Article)

What reasons did Apple give (or appear to give) for keeping iPhone prices unchanged?
How does the iPhone 17 Air differ from other models in terms of design and pricing?
What are the risks for Apple in absorbing tariff costs instead of raising prices?
How might consumers benefit from Apple’s decision to hold prices steady?
Why do you think investors reacted by lowering Apple’s stock price?

Discussion Questions (About the Topic)

Is it better for companies to absorb costs or to pass them to consumers? Why?
How do tariffs affect global tech businesses differently than domestic ones?
Can maintaining price stability be a long-term strategy under cost pressure?
How much do design changes (like thinness or new chips) justify keeping or increasing prices?
Would you wait for newer models or pay more, or look for alternatives, when prices rise?

Related Idiom

“To hold the line” – to refuse to change something despite pressure.
Example: Apple held the line on iPhone prices even though tariffs were increasing costs.

📢 Want more tips like this? 👉 Sign up for the All About English Mastery Newsletter! Click here to join us!

Want to finally Master English but don’t have the time? Mastering English for Busy Professionals is the course for you! Check it out now!

Follow our YouTube Channel @All_About_English for more great insights and tips

This article was inspired by: Reuters (Reuters) and Reuters “Apple launches slim iPhone 17 Air…” (Reuters)