September 28, 2022

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Expect price increases on last year’s models

Expect price increases on last year's models

A customer holds the new green Apple iPhone 13 pro shortly after it went on sale inside the Apple Store on 5th Avenue in New York, March 18, 2022.

Mike Cigar | Reuters

apple It will announce its latest hardware products, Including new iPhone 14 modelsat the launch event on Wednesday, and analysts say customers should expect to pay more for higher-end models by the end of this year.

Bernstein analyst Tony Sakunagi said in a note Tuesday that Apple will likely raise prices for iPhone 14 Pro models by $100 compared to last year’s iPhone 13 Pro. This sentiment is echoed in the memoirs of JPMorgan and Credit Suisse.

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Apple’s iPhone 13 Pro starts at $999, while the iPhone 13 Pro Max, which has a larger screen, starts at $1,099.

Sakunagi said Apple will likely retire the $699 iPhone 13 mini and replace it with the more expensive and larger iPhone 14 Max, which he said will cost about $899. The iPhone 14 Max may help Apple increase the average selling price of its iPhones by offering a much larger screen reserved for more expensive iPhone Pro Max models. Apple is also expected to sell a standard iPhone 14 with the same screen size as the iPhone 13.

Credit Suisse analysts said they will monitor whether the rate hike will affect demand in countries where the US dollar is strengthening.

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“While we think there will be some pressure, we believe the proliferation of installment plans will significantly reduce the impact as customers will only need to pay the equivalent of a few extra dollars per month per device,” Credit Suisse analysts said.

Analysts at JPMorgan expect an increase in prices for the iPhone 14 Pro models due to inflation and supply chain pressures, but they do not expect Apple to raise prices for the regular iPhone 14. The analysts said that the price hike will be more significant for wearable devices such as the Apple Watch.

“Pricing is a key watch point in a difficult macro that includes inflationary pressures and declining consumer spending, but we believe it is more important for wearables that are more discretionary purchases of iPhones by consumers,” they wrote in a note on Tuesday. .