Apple Raises Prices of Older iPhone Models Amid New Releases

During its Surprise and Shine event on Wednesday, Apple introduced the new iPhone 18 and its first foldable device, the iPhone Duo. While much focus was on these latest, high-end models, the company also announced an increase in the prices of its existing iPhones, with a hike of $100 across various models.

Effective immediately, customers shopping on Apple’s official online store will see higher prices for current iPhone models. The starting prices now are $799 for the iPhone 16, $699 for the iPhone 17e, $899 for the iPhone 17, and $1,099 for the iPhone Air.

International markets are experiencing even more significant increases. In India, prices have reportedly risen by approximately 20.5%. The company has also discontinued the iPhone 17 Pro and iPhone 17 Pro Max models.

This move is unusual for Apple, as traditionally, the launch of new iPhone generations leads to a decrease in prices for older models.

The price increase, however, was not entirely unexpected. Speculation had been mounting that Apple might raise prices with the release of its next-generation devices. A key factor driving this possibility is the ongoing global shortage of memory and storage chips, as demand for these components has surged due to AI companies and cloud service providers expanding their data center capacities.

In an interview with The Wall Street Journal in June, former Apple CEO Tim Cook acknowledged that rising component costs could force the company to reconsider its pricing strategies. He mentioned that Apple could no longer fully absorb the increasing costs of memory and storage chips.

Approximately one week after these remarks, Apple increased prices across its Mac and iPad product lines as well.

Another potential reason for the price hike is to help Apple stay competitive with rivals such as Samsung and Google, who are also raising their device prices. Additionally, the company’s new Upgrade program, which allows customers to pay for an iPhone via manageable monthly installments, might serve to offset the impact of higher prices, making the increase less noticeable to consumers.