Apple breaks industry norms with $100 price hike on older iPhones
In a rare move, Apple has increased the cost of existing iPhone 16 and 17 series devices following the launch of the iPhone 18 Pro.
Apple has implemented a $100 price increase across several existing iPhone models already on sale. The move marks a significant departure from standard consumer electronics pricing strategies, where older hardware typically becomes cheaper as newer generations arrive.
The price adjustments affect a broad range of the current lineup. The iPhone 16 has risen from $699 to $799, while the iPhone 17 (256GB) now costs $899, up from $799. The budget-friendly iPhone 17e (256GB) saw its price climb from $599 to $699, and the iPhone Air increased from $999 to $1,099. These hikes coincided with the company's announcement of its latest hardware, including the iPhone Duo and the iPhone 18 Pro series. The new iPhone 18 Pro now starts at $1,199, with the Pro Max starting at $1,299, both representing a $100 increase over previous Pro iterations.
A Departure from Tradition
Historically, the smartphone industry has followed a predictable depreciation curve. When a manufacturer releases a new flagship, the previous year's models are typically discounted to clear inventory and attract budget-conscious buyers. By raising prices on existing inventory, Apple is breaking this cycle. This strategy suggests a shift in how the company views the value of its older hardware or a response to external economic pressures that make previous pricing unsustainable.
Industry Implications
This pricing shift could have ripple effects across the entire mobile ecosystem. By demonstrating that consumers may accept higher prices for older technology, Apple is effectively setting a new industry benchmark. Android Authority noted that Apple has shown that raising the price of a phone already on sale is a viable option. This may provide a justification for Android manufacturers to similarly raise prices on their own existing or upcoming flagship devices, particularly as they struggle to offset rising component costs, such as the ongoing RAM crisis.
What to Watch
Market analysts will now be watching to see if this move impacts sales volumes for the iPhone 16 and 17 series or if the demand remains inelastic despite the higher costs. It remains to be seen if other tech giants will follow suit with their own mid-cycle price increases. For now, the move signals a more aggressive pricing posture from Apple as it navigates a challenging global supply chain and increasing hardware costs.