06:30 AM EDT, 09/09/2025 (MT Newswires) -- Apple ( AAPL ) is expected to raise prices on its Pro and Pro Max models by around $50 to $100, partly due to increased production costs from its ongoing shift to India-based manufacturing, Wedbush said in a note on Tuesday.

Wedbush said that the transition could create about $1 billion in headwind for Apple ( AAPL ) in the September quarter. However, it added that the company's additional $100 billion investment, bringing its total to $600 billion, helps ease tariff-related risks.

Apple ( AAPL ) is also preparing to unveil its iPhone 17 lineup and several new products at its annual September launch event in Cupertino, the brokerage firm said.

The new iPhone 17 Air model, which will replace the 'Plus', is expected to be priced about $100 above the base model, it added.

Wedbush said it sees a significant upgrade cycle ahead, pointing out that roughly 315 million of Apple's ( AAPL ) 1.5 billion iPhone users have not upgraded in over four years, with China remaining a key market.

The firm also flagged Apple's ( AAPL ) currently unclear AI strategy as the 'elephant in the room.'

With more than 2.4 billion iOS devices in use globally, Wedbush said Apple ( AAPL ) must accelerate its AI efforts, potentially through external partnerships or a strategic acquisition such as Perplexity.

Wedbush maintained its outperform rating and $270 price target.