iPhone 14: Why prices may increase on new iPhones

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Apple has some famously loyal customers. However, with broad economic forecasts falling left and right, it could be a tough time convincing people to upgrade their iPhones.

“Apple has a pricing problem,” said Ben Wood, principal analyst at market research firm CCS Insight. In addition to inflationary and cost-of-living pressures that are taking a toll on consumers, Apple is also facing rising costs associated with iPhone components and transportation, he said.

“My expectation is that Apple will have to raise prices,” Wood told CNN Business. “But given the pressure consumers are facing, I think Apple will do everything they can to keep it as small as possible.”

Beyond the broader signs of a slowing economy, Apple is facing other headwinds as it prepares to launch products next week. Supply chain disruptions stemming from China’s zero-covid policy were partly linked to the company’s 11 percent year-on-year decline in quarterly profit reported last month. Apple CEO Tim Cook said on the earnings call, however, that there was “no clear evidence of a macroeconomic impact” on iPhone sales. Cook added that the company posted a record third quarter for “both revenue and iPhone switches,” adding that “customers continue to find that iPhone remains the gold standard for smartphones.”
Apple will launch new iPhones in a & # 39; remote & # 39;  The event on September 7

Firm iPhone sales are partly related to predictions by some industry experts that Apple will increase the price of its new iPhones — though by how much is hard to predict.

Ming-Chi Kuo, an influential Apple analyst based in Asia; He tweeted. Earlier this month, Apple is expected to increase the average selling price of the iPhone 14 lineup by 15 percent compared to the iPhone 13 lineup. (Currently, the standard, non-mini iPhone 13 starts at $799, the iPhone 13 Pro starts at $999, and the iPhone 13 Pro Max starts at $1,099.)

In a research note Monday, Wedbush Securities analysts Dan Ives and John Katsingris predicted Apple would raise the price of its new high-end models by $100. “We believe a $100 price increase on the iPhone 14 Pro/Pro Max is in store, based on the increased functionality and added functionality of this new release,” the note said. The cameras on the upcoming iPhone Pro models are said to be upgraded to account for the price hike and other improvements.

Wedbush analysts predict strong demand for the next iPhone, with 240 million of the 1 billion iPhone users worldwide not having upgraded their phones in more than three and a half years.

Wood also pointed out that Apple’s iPhones are in some ways immune to macroeconomic pressures. Compared to other technology gadgets, consumers view smartphones as “very important”. “Of course, whether you want an iPhone or not is open to question, but people with iPhones are already incredibly loyal,” Wood said.

“I think Apple has some advantages over competitors,” he added. “There are always people waiting for a new iPhone.”

Apple, in its famously tight-lipped fashion, did not respond to CNN Business’ request for comment on iPhone pricing Monday. The company sent out invitations last week for its September 7 event, which is cryptically dubbed “Far Away.”

The event will be broadcast on Apple’s website from the company’s Cupertino, California headquarters starting at 1 p.m.



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