Apple has increased the prices of its older iPhone models by $100, moving away from its traditional strategy of lowering costs after new product launches. In India, these adjustments have led to price hikes of approximately 20.5%. This decision comes as the company manages rising costs for memory and storage chips caused by intense global demand for AI-related hardware.
Apple has launched its latest lineup, including the iPhone 18, iPhone 18 Pro, and the new foldable iPhone Duo, during its 'Surprise and Shine' event led by CEO John Ternus. Alongside these new releases, the company has taken an unexpected step by raising the prices of its existing, legacy iPhone models by $100 in the U.S. and even higher in international markets like India, where prices have risen by roughly 20.5%.
This move marks a departure from Apple's long-standing practice of discounting older smartphones immediately after a new flagship launch. The decision is driven by the global shortage of memory and storage semiconductors. As data centers and AI technologies expand rapidly, the competition for these core components has driven up costs to a point where the company can no longer fully absorb them.
To simplify its product catalog and prioritize higher-margin units, Apple has also officially discontinued the iPhone 17 Pro and iPhone 17 Pro Max. By shifting its inventory focus, the company aims to protect its profit margins, which have been under pressure due to the rising cost of high-end components.
For consumers, this means the entry price for older models is now higher, removing the usual 'value' option that follows a launch event. The company plans to use its existing iPhone Upgrade program to help customers manage these higher costs through monthly installments, hoping to reduce the immediate shock of the price hike.
Investors and market observers will be watching to see how this strategy impacts demand. While raising prices helps maintain profitability against inflationary pressure, it carries the risk of consumer pushback, especially for older hardware that would traditionally be more affordable. The company's ability to maintain sales volumes in the face of these price increases will be a key monitorable in the coming quarters. Future updates will focus on how the supply chain stabilizes and whether demand for the new foldable iPhone Duo and the iPhone 18 series can offset the potential slowdown in legacy device sales.