{"id":63224,"date":"2022-09-01T22:35:01","date_gmt":"2022-09-01T22:35:01","guid":{"rendered":"https:\/\/harchi90.com\/iphone-14-why-price-could-increase-on-new-iphones\/"},"modified":"2022-09-01T22:35:01","modified_gmt":"2022-09-01T22:35:01","slug":"iphone-14-why-price-could-increase-on-new-iphones","status":"publish","type":"post","link":"https:\/\/harchi90.com\/iphone-14-why-price-could-increase-on-new-iphones\/","title":{"rendered":"iPhone 14: Why price could increase on new iPhones"},"content":{"rendered":"
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\n CNN<\/span>
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With Apple widely expected to unveil the new iPhone 14 lineup at its upcoming event next Wednesday, a big question mark still surrounds how much, in this economy, the tech giant will charge for its latest-and-greatest smartphones.\n <\/p>\n

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Apple has some famously loyal customers. Yet as broader economic forecasts get downgraded left and right, it might be a hard time to convince people to upgrade their iPhones.\n <\/p>\n

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\u201cApple faces a real conundrum of pricing,\u201d said Ben Wood, chief analyst at market research firm CCS Insight. On top of inflation and cost-of-living pressures wreaking havoc on rising consumers, he noted that Apple simultaneously faces costs associated with iPhone components and transportation.\n <\/p>\n

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\u201cMy expectation is that Apple will probably have to nudge prices up,\u201d Wood told CNN Business. But given the strain consumers are facing, he thinks Apple will also do \u201ceverything they can to make that as minimal as possible.\u201d\n <\/p>\n

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Beyond the broader signals of a worsening economy, Apple is also facing other headwinds as it prepares for the product launch next week. Supply chain hiccups stemming from China’s zero-Covid policy were partially linked to the company’s 11% year-over-year drop in quarterly profits reported last month. Apple CEO Tim Cook said on the earnings call, however, that there was \u201cno obvious evidence of macroeconomic impact\u201d to iPhone sales. Cook added that the company even set a third-quarter record \u201cfor both revenue and switchers to iPhone,\u201d adding that \u201ccustomers continue to find that iPhone remains the gold standard for smartphones.\u201d\n <\/p>\n

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Steadfast iPhone sales are linked in part to other the predictions from some industry insiders that Apple will hike up the price of its newest iPhones \u2013 though it is difficult to predict by just how much.\n <\/p>\n

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Ming-Chi Kuo, an influential Apple analyst based in Asia, tweeted<\/a> earlier this month that he expects Apple to raise the average selling price of the iPhone 14 lineup by some 15% compared to the iPhone 13 lineup. (Currently, the regular, non-mini, iPhone 13 starts at $799, the iPhone 13 Pro starts at $999 and the iPhone 13 Pro Max starts at $1,099.)\n <\/p>\n

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In a research note Monday, analysts Dan Ives and John Katsingris of Wedbush Securities predicted that Apple would raise the price of its newest higher-end models by some $100. \u201cWe believe a $100 price increase on the iPhone 14 Pro\/Pro Max is likely in store given component price increases as well as added functionality on this new release,\u201d the note stated. The cameras on the upcoming iPhone Pro models are rumored to be upgraded to possibly justify the price increase, among other enhancements.\n <\/p>\n

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The Wedbush analysts also predicted strong underlying demand for the next iPhone, estimating that some 240 million out of 1 billion iPhone users worldwide have not upgraded their phones in over three and a half years.\n <\/p>\n

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Wood also noted that Apple’s iPhones are in some ways insulated from macroeconomic pressures. Consumers are also increasingly looking at smartphones as \u201calmost essential,\u201d compared to some other tech gadgets. \u201cWhether you really need an iPhone or not, that’s open to questions, but people who have an iPhone already are unbelievably loyal,\u201d Wood said.\n <\/p>\n

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\u201cI think that Apple has some advantages over rivals,\u201d he added. \u201cThere are people who are always waiting for a new iPhone.\u201d\n <\/p>\n

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Apple, in its famously tight-lipped fashion during the lead-up to its product launches, did not respond to CNN Business’ request for comment Monday on the latest iPhone prices. The company sent out invites last week for its September 7 event, which has been cryptically dubbed: \u201cFar out.\u201d\n <\/p>\n

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The event will be broadcast on Apple’s website from the company’s Cupertino, California, headquarters starting at 1 pm ET.\n <\/p>\n<\/p><\/div>\n