Apple Raises Prices on Older iPhone Models in Rare Strategy Shift
Following the launch of the iPhone 18 Pro and iPhone Duo, Apple has increased prices for the iPhone 16 and 17 series by $100.
Apple has increased the U.S. prices of several existing iPhone models by $100 shortly after the debut of the iPhone 18 Pro and the foldable iPhone Duo. The move marks a significant departure from the company's historical pricing patterns.
The price adjustments affect a broad range of the current lineup. In the United States, the iPhone 17 now starts at $899, the iPhone Air at $1,099, the iPhone 17e at $699, and the iPhone 16 at $799. Similar increases have been implemented in other markets; in India, the iPhone 17 now starts at INR 99,900, the iPhone Air at INR 1,49,900, the iPhone 17e at INR 79,900, and the iPhone 16 at INR 89,900. Additionally, the iPhone 16 Plus has been removed from Apple's U.S. store lineup entirely.
A Break from Tradition
This pricing shift is highly unusual for the consumer electronics giant. Typically, Apple follows a predictable lifecycle strategy where the launch of a new flagship—such as the iPhone 18 Pro or the new iPhone Duo foldable—triggers a price reduction for previous-generation hardware to maintain appeal for budget-conscious consumers. By raising prices on the iPhone 16 and 17 series instead of discounting them, Apple is actively increasing the entry cost for its mid-tier and legacy devices.
Market Implications
This reversal suggests a shift in how Apple views the value retention of its hardware or a change in its approach to managing product tiers. By narrowing the price gap between older models and the newest releases, Apple may be attempting to push more consumers toward the higher-margin iPhone 18 Pro and iPhone Duo. This strategy risks alienating users who rely on the traditional "price drop" window to upgrade their devices, potentially slowing the upgrade cycle for those not interested in the latest foldable or Pro technology.
What to Watch
Industry analysts will be monitoring whether this pricing model extends to other regions or if it is a temporary adjustment. While the price hikes are now active in the U.S. and India, it remains to be seen if Apple will provide a formal explanation for the move or if further models will be phased out of the store, similar to the iPhone 16 Plus. The long-term impact on sales volume for the iPhone 17 and 16 series will likely reveal if consumers are willing to pay a premium for older hardware in the face of new flagship competition.