Is Apple Raising iPhone Prices?

Upcoming iPhone models could come with a higher price tag when they hit the market later this year.

Apple is purportedly considering plans to increase the price of future iPhone models to boost the Cupertino, California-based technology giant’s overall revenue, according to “people familiar with the matter,” Bloomberg reported.

The possible price increase comes at an awkward time for U.S. consumers, many of whom have been navigating several economic challenges, including high interest rates, maxed-out credit cards, and depleted savings accounts, as previously covered by The Dallas Express.

Despite lowering its 2023 forecast for entry-level phones by about 2 million units, the company reportedly expects initial volumes for new iPhones to land between 83 million and 85 million, slightly lower than the company’s 90 million target projection for the year, Bloomberg reported.

In 2022, Apple raked in $394.3 billion in revenue, an increase from the $274.5 billion reported two years earlier. Over the past decade, Apple’s annual revenue has more than quadrupled, making it the leading tech company in the United States and the world’s biggest company by market capitalization.

As of July 29, 2023, Apple had a market cap of over $3 trillion, nearly $500 billion more than Microsoft.

“While the recovery in global smartphone demand is below expectations, it appears that the premium market (and hence Apple) is less impacted,” Deutsche Bank analyst Sidney Ho wrote in a client note, NBC 5 DFW reported.

Although Apple has experienced some manufacturing hiccups since the COVID-19 pandemic, the company has chosen to stick with its 2019 price structure of $999 for Pro models and $1,099 for Pro Max models.

Apple’s product line is already known for capturing a wide audience, but the price increase on upcoming iPhone models could help Apple capitalize on recent trends in the smartphone industry, such as augmented reality, virtual reality, artificial intelligence, and 5G connectivity, among others.

Apple typically hosts its annual iPhone event around September. During such events, Apple showcases its newest set of iPhones and discusses the latest design, specs, price, and release date.