Apple implemented its anticipated iPhone price hike quietly, with the aim of obtaining more money from consumers without causing a sudden shock.
In this endeavor, the company only raised the price of the highest-end Pro Max model by $100 to $1,199, while keeping the prices of the other three new versions unchanged. Additionally, the upgraded phone now offers double the storage capacity, allowing Apple to argue that it was not a true price increase.
Apple is following a consistent strategy of appealing to cautious consumers who are concerned about inflation. While the company is not drastically altering its prices, it is introducing innovative ways for customers to increase their spending.
By incorporating premium features like enhanced zoom lenses and titanium frames into their high-end iPhones, Apple is subtly encouraging shoppers to opt for more expensive products.Apple’s decision to switch to a USB-C port on the iPhone, which was initially opposed by the company, will provide new opportunities for revenue generation.
For customers who want their AirPods to have the same connector as the latest iPhones, they will need to purchase a new pair for $249. Alternatively, they can buy an adapter from Apple for $29 to use their old Lightning chargers.
Some investors were hoping for a broader price increase from Apple, which may have contributed to the lukewarm response to the company’s iPhone event on Tuesday, as noted by Evercore ISI analyst Amit Daryanani.
As a result, Apple’s shares slipped 1.7% to $176.30.However, Apple is facing challenges in the overall smartphone industry, which is experiencing a slump. According to IDC, worldwide smartphone shipments declined by nearly 7% in the last quarter, impacting Apple’s main source of revenue.
The company is also facing difficulties in China, where it is confronted with a growing government ban and competition from Huawei Technologies’ advanced new phone, adding further pressure.
