Apple Increases iPhone Prices Amid Rising Costs
Apple announced on September 6, 2023, that the starting price for its new iPhone 18 Pro will be $1,199, marking a $100 increase from the previous year’s model. The iPhone 18 Pro Max starts at $1,299, while the new foldable iPhone Duo is priced at $1,999. This change comes as the company anticipates higher memory costs, projecting gross margins to fall to between 47% and 48% from 50.1% in the prior quarter.
The rise in prices is less than initial estimates, with research firm TrendForce predicting a potential increase of $150 to $200 due to memory costs that are reported to be nearly 400% higher than last year. The new iPhones will be available for pre-order starting September 12, 2023, and will hit stores on September 18, 2023.
Despite the price hikes, concerns remain about Apple’s margins as analysts expect that increased component costs will overshadow the benefits of higher retail prices. The company is facing a challenging memory pricing environment with continued cost pressures projected beyond the September quarter.
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