October 6, 2022

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Expect a sharp increase in the price of the new iPhone from Apple

Expect a sharp increase in the price of the new iPhone from Apple

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The prices of the upcoming iPhone 14 series are expected to rise sharply. After sticking with last year’s iPhone prices, some analysts expect camera, chip, and design improvements — as well as continued pressure from shipping costs and a strong US dollar — to drive up iPhone prices dramatically, according to another Article – Commodity.

With levels of inflation similar to when hawk Paul Volcker was head of the central bank, there are concerns, however, that consumers are becoming more cost-conscious – especially wage earners. However, Apple is expected to keep its standard iPhone models at the same starting price, with the iPhone Pro and Pro Max increasing base prices to $999 and $1,199, respectively.

“While the regular iPhone will remain at the same price, we think a $100 iPhone 14 Pro/Pro Max price increase is likely to be a good deal given the higher price of components as well as added functionality compared to previous models,” Wedbush analyst Daniel Ives wrote in a message. new customers.

The big launch will be held later in September.

Biggest Revenue Engine

Apple’s smartphones are by far its largest business, bringing in more than $162 billion during three quarters of the company’s fiscal year, representing more than 57 percent of Apple’s total revenue.

However, the planned iPhone 14 debut comes amid uncertainty over how the demand for smartphones will escalate in the current macroeconomic climate.

The International Data Corporation (IDC) recently forecast a 6.5 percent drop in global smartphone shipments this year. However, iPhone demand appears to have held up better than the market as a whole, and Apple CEO Tim Cook said on the company’s latest earnings call that he didn’t see “clear evidence of a macroeconomic impact” when it came to iPhone demand.

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Apple shares are down 10.9 percent so far this year. By comparison, the Dow Jones Industrial Average (DJIA) is down 12.9 percent, with Apple listed as one of the 30, while the S&P 500 is down 16.8 percent this year.