Will Apple raise iPhone 15 prices?

Will Apple raise iPhone 15 prices?

The Expensive Evolution of the iPhone: How Much More Can Apple Charge?

Remember when the first iPhone came out in 2007 and it cost a whopping $499? That was a lot of money back then, but it was just the beginning. The price of Apple’s iconic product has steadily – sometimes dramatically – increased, due to a wide array of factors, like improved technology and features, as well as inflation. As a publicly listed company, Apple also faces consistent pressure to keep growing its booming iPhone business, which brings in nearly half its revenue. But how much more can Apple charge for its iPhones?

The trend of rising iPhone prices over the last 15 years is not consistent or predictable, as Apple adjusts its pricing strategy based on various factors, including consumer demand, competitive pressures, and inflation. Despite the slowing smartphone market, Apple seems to be confident in its ability to charge more for its iPhones this year. According to various rumors and reports, the iPhone 15 Pro and iPhone 15 Pro Max could see a price increase of $100 or even $200 compared to the iPhone 14 models – in the US. Apple may justify this price hike by offering some exclusive features and improvements for the Pro models, such as a titanium body, a faster processor, skinnier bezels, and a better camera.

Last year, Apple increased prices last year outside the US, in some Asian and European countries whose currencies had dropped against the dollar ahead of the 2022 iPhone event. Shoppers in the UK had to contend with a price increase of approximately $85 for the iPhone 14, while people in Japan faced one of the highest prices globally, approximately $150 more. However, the iPhone 14 didn’t see a price hike in mainland China, Apple’s largest market outside the US, despite a drop in the country’s currency.

How Apple will price the upcoming iPhone 15 isn’t guaranteed until Apple unveils those details at its event in September. Industry analysts believe it will be tough for the tech giant to increase prices for the regular iPhone models in 2023, given the looming risk of a recession at the time, as well as Apple’s success with the expansion of installment plans. Despite a possible increase in iPhone prices stateside, people in the US don’t tend to feel the pinch as much since carriers typically offer discounts and subsidies, shaving hundreds of dollars off the list price to encourage upgrades.

Today’s iPhones are significantly more expensive than Apple’s early models. In its 16-year lifetime, however, the steepest series of price increases occurred over the last seven years. When Apple released the iPhone 11 in 2019, the price dropped back to $699, making it the lowest-priced phone the tech giant had launched in two years at the time. But that break didn’t last long. The year after, the iPhone hit its highest price ever: $829 for the iPhone 12 – partially thanks to the introduction of 5G. That means in six years, the starting price for a “regular” iPhone has increased $180 at face value, without adjusting for inflation.

Apple hasn’t increased the prices of the regular iPhone and the pro iPhones in the two years since the iPhone 12. But it has employed clever pricing strategies that make it more expensive to buy into the flagship iPhone lineup. For instance, Apple debuted the iPhone 12 Mini in 2020, which retailed for $729 unlocked. Fast-forward to 2022, and suddenly the Mini is missing from the iPhone lineup. Without an iPhone 14 Mini, the price of buying into the iPhone 14 series is now $829. That’s higher than last year’s buy-in price by $100.

For the iPhone 15, the buy-in price of the upcoming flagship lineup or the price of the regular iPhone 15 is expected to remain the same. However, the prices of the Pro models could see an increase whether by way of a higher base storage variant or an actual price hike. According to analysts, the iPhone 15 Pro could cost $100 more than the iPhone 14 Pro, while the iPhone Pro Max price hike could be in the range of $100 to $200 more. Despite these potential increases, people in the US don’t tend to feel the pinch as much since carriers typically offer discounts and subsidies.

It’s no secret that phone prices have soared as technology has progressed. New features like 5G, advanced cameras, and foldable displays all make for more expensive phones. Thankfully, even Apple’s priciest iPhone is still cheaper than foldable phones like the Galaxy Z Fold 5, which starts at $1,800 without a trade-in. But it’s getting close. The highest-storage variant of the iPhone 14 Pro Max (1TB) will set you back $1,599 – and that’s before you throw in sales tax, AppleCare, a phone case, and anything else you might need to use your new iPhone.

In conclusion, Apple has been steadily increasing the prices of its iPhones over the years, with occasional fluctuations due to various factors. The upcoming iPhone 15 Pro and iPhone 15 Pro Max may see significant price increases, but it remains to be seen how well consumers will respond. As technology continues to advance, phone prices are likely to continue their upward trend, making it a challenge for companies like Apple to balance value and affordability while still meeting their financial goals.