This year, Apple is set to release five new iPhone models, indicating a possible price hike that many have speculated about. The budget-oriented iPhone SE 4 is likely to see a slight price increase, while the premium iPhone 17 lineup may also follow suit. Here are a couple of points to consider.
#1: Increasing demand for premium iPhones
Apple’s Pro models have consistently attracted a large consumer base.
This trend continues with the launch of the iPhone 16 series, where Apple has enhanced the base model more than ever before.
According to a recent analysis by Counterpoint, the popularity of Pro models has surged this year.
Analyst Ivan Lam comments on the sales trends for iPhones in 2024:
While overall iPhone sales have seen a decline, there is a noticeable shift toward Apple’s high-end models, which has helped mitigate the downturn. In markets such as China, the market share for Pro series devices has increased significantly. To put this into perspective, the Pro and Pro Max models held about a mid-forties share in Q4 2023, but we anticipate that the share will surpass the fifty percent mark in Q4 2024.
The rising interest in Apple’s top-tier models suggests a strong potential for price increases.
#2: iPhone 17 Air may carry a higher price point
The increasing preference for more expensive iPhone models signals yet another reason to anticipate price hikes this year, especially with the introduction of the new iPhone 17 Air.
The iPhone 17 Air is set to replace the Plus models in the iPhone series, but this doesn’t guarantee it will carry the same price tag.
Initially, there were rumors suggesting the 17 Air could be an ultra-premium model, potentially priced higher than the Pro range.
However, recent reports indicate that it may actually be priced just below the Pro series. Still, various factors suggest that Apple might choose not to underprice what could be its most coveted new flagship.
The 17 Air is expected to feature a sleek new design that will likely enhance its attractiveness in the lineup. While some high-end features may be absent, its design alone should attract considerable interest.
Apple is unlikely to risk missing out on revenue by pricing it too low.
Implications for iPhone 17 pricing
Considering these factors, it’s reasonable to anticipate slight price increases for the iPhone 17 series. The only possible exception might be the entry-level iPhone 17, as it has not been a top seller and will likely face tough competition from the new SE 4.
Currently, the iPhone 16 is priced at $799, the 16 Plus at $899, the 16 Pro at $999, and the 16 Pro Max at $1,199.
One possible pricing strategy for the iPhone 17 lineup could be:
- iPhone 17: $799 or $849
- iPhone 17 Air: $999
- iPhone 17 Pro: $1,099
- iPhone 17 Pro Max: $1,299
This indicates that Apple could raise the price of the Pro models and the Air by $100 each, while leaving the base iPhone 17 at its current price or only making a minor increase.
Despite various economic factors, Apple has maintained stable pricing for its flagship iPhones in recent years. However, indicators suggest that 2025 may be the year for a shift.
What are your predictions for iPhone 17 pricing? Share your thoughts in the comments.
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