Apple is set to release five new iPhone models this year, and indications suggest that this may be the year prices begin to rise. While the budget-friendly iPhone SE 4 is anticipated to see a slight price increase, the flagship iPhone 17 series could also follow suit. Here are two key reasons why this could happen.
#1: Growing Demand for Premium iPhones
Apple’s Pro models have consistently enjoyed immense popularity among consumers.
This trend appears to be continuing with the iPhone 16 lineup, even though Apple has enhanced the base model, making it more appealing than ever.
Notably, the popularity of Pro models has surged this year, according to a recent report by research firm Counterpoint.
Analyst Ivan Lam commented on the iPhone sales for 2024:
While overall iPhone sell-through has declined, consumer interest is shifting towards Apple’s ultra-premium devices, which helps to mitigate some of that decline. In markets like China, the share of Pro series devices is significantly increasing. For example, in Q4 2023, Pro and Pro Max devices held a share in the mid-forties range in China, and we anticipate that by Q4 2024, the figures could exceed the halfway mark.
The heightened interest in Apple’s top-tier models suggests that now could be an opportune moment for the company to implement a price increase.
#2: The iPhone 17 Air Will Command a Premium
Along with the rising consumer preference for Apple’s more expensive models, the introduction of the new iPhone 17 variant reinforces the expectation of higher prices this year.
The iPhone 17 Air will succeed the Plus models within the iPhone range, but this doesn’t guarantee it will maintain the same pricing structure.
Initially, there were rumors indicating the 17 Air might be an ultra-premium offering, surpassing even the Pro models in cost.
However, recent reports suggest it will likely fall just below the Pro models in terms of pricing. Nonetheless, there are several factors to suggest that Apple won’t price it too competitively.
The 17 Air is expected to feature a radically slim new design, making it a highly desirable option within the iPhone 17 lineup. While it may lack some Pro features, its unique form factor should drive strong demand.
It’s unlikely Apple would choose to underprice what could potentially be its most sought-after flagship model.
Implications for iPhone 17 Pricing
Considering these two points, it’s reasonable to anticipate moderate price increases across the iPhone 17 lineup. The one possible exception might be the base iPhone 17, as this segment is not the most popular and will face stiff competition from the upcoming SE 4 model.
Currently, the pricing structure for the iPhone 16 lineup is as follows: the iPhone 16 starts at $799, the 16 Plus at $899, the 16 Pro at $999, and the 16 Pro Max at $1,199.
The iPhone 17 lineup could potentially be structured like this:
- iPhone 17: $799 or $849
- iPhone 17 Air: $999
- iPhone 17 Pro: $1,099
- iPhone 17 Pro Max: $1,299
In essence, Apple might elevate the Pro models and the Air by $100 each while keeping the base iPhone 17 pricing stable or making a slight increase.
Despite inflationary pressures and other economic factors, Apple has maintained its flagship iPhone pricing over recent years. However, 2025 may mark a turning point in this trend.
What are your thoughts on the potential pricing for the iPhone 17? Share your opinions in the comments.
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