Recent projections indicate that the price of the iPhone 16 Pro Max could soar from $1,599 to $2,300, while the standard iPhone 16 may rise from $800 to $1,142.

The company's pricing strategy is deeply influenced by its corporate culture, which prioritizes customer perception and the potential backlash from higher prices.

Analyst Mark Gurman suggests that while Apple might raise prices to offset tariff costs, the company could also absorb some expenses to keep customer satisfaction high.

Apple is facing a significant pricing challenge as anticipated tariffs on electronics are set to take effect by early April 2025.

While Apple CEO Tim Cook has previously negotiated tariff exemptions, the current landscape presents broader challenges for both consumers and employees.

Historically, Apple has increased prices on its pro models, and with regular iPhone prices fluctuating, a price hike seems overdue regardless of the tariffs.

The upcoming iPhone 17 is expected to be more expensive due to these tariffs, leading some consumers to consider purchasing the current iPhone 16 instead.

Apple's iPhone sales have been declining globally over the past two generations, with recent earnings reports showing missed sales expectations, particularly in the crucial Chinese market.

In response to these challenges, Apple is proactively shipping more stock to the U.S. and exploring production shifts from China to India, where tariffs are lower.

A higher price point for the new models may deter potential upgrades among consumers who are already facing economic uncertainty, complicating Apple's sales strategy.