Apple introduced its latest iPhone 18 and the first foldable iPhone, the iPhone Duo, on Wednesday. Alongside these new devices, the company has increased prices on its existing iPhone models by $100. Customers shopping on Apple’s online store will now see starting prices such as $799 for the iPhone 16, $699 for the iPhone 17e, $899 for the iPhone 17, and $1,099 for the iPhone Air. Some international markets, including India, have experienced even larger price jumps, with increases around 20.5%. Apple also discontinued the iPhone 17 Pro and iPhone 17 Pro Max.
This pricing move is notable because Apple typically lowers the cost of older iPhone models when new versions are released. However, the company has faced rising costs for memory and storage chips, driven by increased demand from AI and cloud infrastructure sectors. Former Apple CEO Tim Cook previously indicated that these rising component expenses might necessitate changes to Apple’s pricing approach. Shortly after those remarks, Apple raised prices on its Mac and iPad products.
In addition to managing component costs, Apple may be aligning its pricing with competitors like Samsung and Google, who have also increased their device prices. The company’s Upgrade program, which allows customers to pay for iPhones in monthly installments, could also help mitigate the impact of higher upfront costs for consumers. This shift in pricing strategy highlights the broader challenges technology companies face amid supply constraints and inflationary pressures.