Bad news, Apple fans: the iPhone 15 is expected to cost more than its predecessor when it launches in September this year.
That’s according to analyst Dan Ives, who recently told CNBC that he expects the average selling price (ASP) of Apple’s next-generation iPhones to be higher than last year’s equivalent figures. For context, the iPhone 14 starts at $799 / £849 / AU$1,339, while the iPhone 14 Pro – whose successor, the iPhone 15 Pro, has already been the subject of price hike rumors – starts at $999 / £1,099 / AU$1,749.
If accurate, a series-wide price increase for the iPhone 15 line would mark the first of its kind in the US since 2017. International markets have seen price increases as recently as last year’s iPhone 14 line, owing to heightened VAT (value-added tax) costs.
So, why might Apple be preparing to hike the price of the iPhone 15 line across the board? The most likely reason is production costs. According to one prominent leaker, the iPhone 15 will be 12% more expensive to produce than the iPhone 14, while the iPhone 15 Pro will be a whopping 20% more expensive to produce than the iPhone 14 Pro.
Compared to the iPhone 14 series, the production cost of the iPhone 15 base model is expected to increase by around 12% and the iPhone 15 Pro model by around 20%.TSMC fab price hikes may be the main culprit pic.twitter.com/GovuLF27WCApril 26, 2023
It’s hard to pinpoint exactly why these devices are going to cost Apple so much more to build than their predecessors, but it’s no secret that energy, raw material, and labor costs have been rising globally due to various economic factors. And if Apple’s new iPhones cost the company more money to produce, they’ll almost certainly cost consumers more money to buy.
That said, Ives doesn’t expect these price increases to hinder sales of the iPhone 15 line. In fact, he predicts that the iPhone 15 could be Apple’s best-selling iPhone in years, since “roughly 250 million iPhones have not been upgraded in over four years.”
The launch of the iPhone 15 and its siblings could therefore prove a “trophy case moment” for Apple, Ives explained to CNBC, adding that a boost in revenue from Apple Services will put the company in a “massive position of strength” going into 2024.
Apple CEO Tim Cook has already admitted that he believes consumers “are willing to really stretch to get the best they can afford in [the smartphone] category,” so it’s not hard to imagine the company betting big on the blind loyalty of its fanbase with the iPhone 15 line.
In any case, we’ll know for sure whether the iPhone 15 will cost more than its predecessor come September, when Apple unveils its next line of best iPhones. For our thoughts on how these devices might stack up, check out our speculative comparisons between the iPhone 15 vs iPhone 15 Pro, iPhone 15 vs iPhone 14, iPhone 15 Pro vs iPhone 14 Pro and iPhone 15 Pro vs iPhone 15 Ultra.
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