Apple announced price increases of $100 on multiple iPhone models, including the new iPhone 18 Pro and iPhone 18 Pro Max, as well as older devices like the iPhone 16, iPhone 17, and iPhone Air. The adjustments were revealed during the company’s latest product announcements on Wednesday, with the new Pro models launching on September 18.
Key price changes:
- iPhone 18 Pro: Now starts at $1,199 (up from $1,099).
- iPhone 18 Pro Max: Now starts at $1,299 (up from $1,199).
- iPhone 16: Now starts at $799 (up from $699).
- iPhone 17: Now starts at $899 (up from $799).
- iPhone Air: Now starts at $1,099 (up from $999).
The iPhone 17e also saw a price increase to $699, while Apple introduced its first foldable model, the iPhone Duo, priced at $1,999 with a U.S. release date of October 23.
Financing options for the new models include monthly payments over 24 months, with the iPhone Duo available for $83.29/month, the iPhone 18 Pro Max for $54.12/month, and the iPhone 18 Pro for $49.95/month. Older models like the iPhone 16 and iPhone 17 are also eligible for similar financing plans.
Apple did not disclose pricing for a standard iPhone 18 model, leaving its cost and launch date unspecified. The company also launched a new lease program, Apple Upgrade, allowing customers to lease iPhones for upgrades after two years.
Industry context:
The price hikes follow a broader trend in the tech industry, with companies like Samsung and Google also raising prices on some smartphone models due to rising memory costs. Apple previously increased prices on iPads and MacBooks in response to a global memory shortage, which has been exacerbated by the AI revolution. Memory chip production has shifted toward specialized chips for data centers, leading to higher costs for consumer electronics.
Analysts had anticipated price increases for the new Pro models but noted the broader price adjustments as a notable shift. The memory shortage, described by Apple CEO Tim Cook as a “100-year flood”, has driven up costs across multiple product lines, with Cook stating the company made the decision "reluctantly."
The price adjustments apply to both new and existing iPhone models, reflecting Apple’s strategy to address supply chain challenges while maintaining profitability.