2027 will be a special year for Apple. The iPhone will be turning 20. Apple is planning a comprehensive redesign for the iPhone to mark the occasion. But while many are looking forward to a spectacular new model, there's also some bad news. The anniversary model could be significantly more expensive than expected. Here's why.
Apple has shaped the smartphone world since the launch of the first iPhone in 2007. For its 20th anniversary, the company is planning a major innovation. This includes not only design changes but also new technical challenges. At the same time, trade tariffs and production issues mean the price of the new iPhone could rise significantly.
Apple plans a major redesign of the iPhone
Apple plans to launch a completely new design for the iPhone's 20th anniversary. While details are still scarce, one thing is clear: glass will play a much larger role than before. This points to an even more elegant and futuristic iPhone. The design will likely reach a new level not only aesthetically but also technically. Such a special anniversary model will carry a price premium simply because of the exclusive materials and new technology. However, this premium could be particularly high for the 2027 anniversary iPhone.
Relocating production is more difficult than expected
Apple has been working for some time to reduce its dependence on China, and India is playing an increasingly large role in this process. Apple can currently meet about a third of the annual US demand for iPhones in India. This is progress, but it is not enough to relocate all production. This will be particularly difficult for new and complex products such as the planned anniversary iPhone. Producing such high-end models requires new parts, new techniques, and an extremely high level of manufacturing expertise. To date, no major new Apple product design has been produced outside of China, and there is no indication that this will change in 2027. Bloomberg reports that the general quality of iPhones from India is now comparable to that from China. But for highly complex models such as the anniversary device, China remains irreplaceable for the time being. The process of completely relocating production will take years.
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High tariffs could cause prices to explode
Another factor that could drive up the price of the new iPhone in the US are the persistently high tariffs on goods from China. Currently, certain products are subject to tariffs of at least 145 percent, and in some cases even up to 245 percent. So far, the tech sector has been partially exempt, but that could change. If these tariffs remain in place or are even expanded, Apple would have to pass the additional costs on to customers. This would mean that the iPhone anniversary model would be significantly more expensive in the US than current top models. Reducing the costs by shifting production to India is not yet realistic for this particular model. Apple CEO Tim Cook has repeatedly emphasized the high level of manufacturing expertise in China. Despite all efforts at diversification, it is clear that state-of-the-art iPhones are unlikely to be realized in the foreseeable future without Chinese production (via Bloomberg).
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The iPhone 2027 will be special – and particularly expensive
Apple will unveil a special iPhone in 2027 that will set new standards. More glass, new technologies, and a completely new design make the anniversary model something special. At the same time, production issues and high tariffs mean that the 2027 iPhone will likely be significantly more expensive than previous models. Anyone who wants the 20th anniversary model should be prepared for a very high price. Whether it will be worth it remains to be seen. (Image: Shutterstock / Yalcin Sonat)
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