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Why Apple will definitely raise the price of new iPhones

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Despite the fact that the flagship iPhones today are quite expensive, if you judge, Apple has not increased the price of its smartphones for 5 years now. The last increase was in 2017, except for the launch of the iPhone Max with a larger screen and an additional $100 increase in price.

But even if we take it as a starting point, then the prices for the iPhone have not changed for 4 years. But this is a long time, during which Apple smartphones have changed a lot for the better, probably making the company’s margin smaller.

Of course, Cupertino cannot afford to lose money on the production of its main product, which means that another price increase is waiting for us soon.

In favor of the fact that the iPhone will start to rise in price, several factors speak. You may find some of them less important than others. It is even possible that they will not affect the final prices for Apple smartphones in any way.

However, it would be at least unfair to ignore them in the context of our mini-research. Therefore, we present them all. Moreover, the conclusion in any case will be the same – the prices will really rise.

How much do Apple earn

Just the other day, Apple raised the salaries of its employees by 10%

The first thing that will force Apple to raise iPhone prices is inflation. We will not talk about its causes, but over the past year, inflation in the US has reached 8%. This is a record figure for the States, and it affects all enterprises, including Apple.

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The company is already systematically responding to rising inflation by increasing the salaries of its employees. For example, Apple Store clerks now receive a minimum of $22 an hour versus the $20 they were previously paid. There is a 10% increase.

Perhaps one of the reasons Apple has agreed to raise its employees’ pay is because they want to join unions that stand up for them. But it is obvious that such a desire of employees did not arise out of the blue. They were no longer satisfied with the working conditions, and they demanded improvements. The wage increase was one of the demands that Apple decided to make in order to offset the rising cost of living.

Will the iPhone rise in price and why

See how metal prices have changed. But almost all of them are used in the production of iPhone

The components from which Apple assembles its devices have become more expensive. The increase in prices affected almost all industries. But aluminum has especially risen in price. It became too expensive to buy it, as a result of which Apple tried to reduce the volume of its use in production.

As a result , the iPad Air 5 , which came out this spring, is said to be more brittle and pliable due to the reduction in thickness of the aluminum sheet that forms the case.

Apple has not confirmed or denied this in any way, preferring to ignore the problems of crunching and creaking that iPad Air 5 owners experience during use. However, aluminum is not the only metal and component that has become more expensive.

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Conductors, sapphire crystals, nitrogen used in production – almost everything has risen in price, and it is already becoming very difficult for Apple to contain the price increase for its products, which, according to experts, are starting to bring less money. But a company cannot operate at a loss.

iPhone SE 3 price

iPhone SE 2022 became the first smartphone in 2022, whose price Apple had to increase

Apple has already begun gradually raising prices. The first call was the iPhone SE 2022, which went up in price by about 8%. Instead of the $400 that Apple asked for the previous generation model, the new product was priced at $430.

Someone will probably say that the reason for the price increase was the increase in battery capacity and the new generation processor with 5G support. Perhaps this is partly true. But remember for yourself: the prices of all other iPhone models of this kind have never been affected by an upgrade.

Apple systematically improved the performance of all its previous smartphones, increased the capacity of their batteries, supplied them with 5G support, and even equipped them with better displays than before. But changing the IPS-matrix to AMOLED clearly affects the price more than an additional 200 mAh, right?

It’s just that in Cupertino they decided not to take on the growing costs themselves, but to finally shift them to the consumer, who must pay for the improvement in performance out of his own pocket.

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How much will the iPhone 14 cost

The iPhone 14 Pro will be like this, and it seems to cost at least 10% more than last year’s model

However, there is no need to be afraid. The price increase will most likely not affect all 2022 iPhones. Almost certainly, Apple will try to keep the cost of the iPhone 14 at the same level. But for the sake of this, the company will have to abandon equipping the new flagship processor.

As predicted by industry experts, the iPhone 14 is likely to get the old A15 Bionic processor. iPhone 14 Max, which will replace the iPhone mini, too. But since this is a new model, Apple is not tied to anything in terms of pricing.

This means that the price of the novelty will certainly be set based on new principles. So I would guess that the iPhone 14 Max will be priced plus or minus $900.

But the top models will probably add about 10% in price. So the iPhone 14 Pro will cost $1,099 and the iPhone 14 Pro Max will cost $1,199. In the end, it would be dangerous to raise prices more – consumers may not understand and not accept this.

And 10% just compensate the company for inflationary costs and an increase in the cost of components used in production. Moreover, the actual increase will be even higher, because the iPhone 14 will become even more profitable than its predecessor due to the old processor and the same price.

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