Apple has announced the launch of the iPhone 18 and its first foldable model, the iPhone Duo. In conjunction with these new releases, the company is increasing the prices of existing iPhone models by $100, with even larger hikes in some international markets, such as a 20.5% increase in India. Additionally, Apple has discontinued the iPhone 17 Pro and Pro Max models.
This pricing strategy marks a departure from Apple's typical approach, where older models usually see price reductions with the introduction of new devices. The price hikes are attributed to rising component costs, particularly for memory and storage chips, which have been influenced by increased demand from AI and cloud sectors.
Watch for how consumers react to the price hikes, especially in markets like India. The impact on sales of older models and the effectiveness of Apple's Upgrade program will be crucial. Keep an eye on competitor responses and potential shifts in market dynamics.