Apple Gears Up for iPhone 17 Launch: Will Prices Surge?

Apple is preparing to launch its latest iPhone lineup, headlined by the highly anticipated iPhone 17 series. The announcement, to be streamed live from the company's headquarters in California, is also expected to include a range of other products, including the Apple Watch Ultra 3, Apple Watch Series 11, Apple Watch SE 3, the next-generation iPad Pro, Vision Pro, Apple TV 4K (4th generation), HomePod mini (2nd generation), AirTag (2nd generation), AirPods Pro 3, and Studio Display 2.

What's New in the iPhone 17 Series?

Leaks suggest Apple may ditch the less popular 'Plus' model, introducing instead the iPhone 17 Air, characterized by an ultra-slim design. It's expected to feature a 6.6-inch display and a 5.5mm thick body. All models will support ProMotion technology with a 120Hz refresh rate. The Pro models may adopt an aluminum frame and a semi-glass, semi-aluminum back design, with changes to the camera module design. Furthermore, the iPhone 17 Pro Max is rumored to sport a 48-megapixel periscope telephoto lens supporting 8K video recording.

A19 Chip and Connectivity Technologies

The iPhone 17 series is expected to be powered by the A19 chip, built on an improved 3nm process, offering performance and power efficiency improvements. The iPhone 17 Pro and iPhone 17 Pro Max will be equipped with the A19 Pro chip, while the iPhone 17 and iPhone 17 Air may get the standard A19 chip. Moreover, the iPhone 17 Air will feature Apple's in-house developed Wi-Fi 7 chip, replacing the Broadcom chip. The company is also testing its own 5G modem chip on select models.

Will Prices Increase?

The burning question on the minds of consumers and investors alike is: will Apple increase the prices of the new iPhones? While smartphone prices haven't seen significant increases thus far, other consumer goods like clothing, footwear, and coffee have already risen due to increased tariff costs. Some electronics, especially gaming consoles, have also been affected by tariffs. Sony, Microsoft, and Nintendo have all raised the prices of their gaming consoles in the US this year. Some Wall Street analysts predict that Apple will follow suit. Edison Lee, an analyst at Jefferies, predicted in a July report that the average selling price of the iPhone 17 would increase by $50.

Apple's Pricing Strategy and Expected Implicit Increases

Apple is extremely cautious about adjusting hardware prices. Since 2017, the company has maintained a price of $999 for the smaller Pro model, but it has made some other adjustments. In 2020, the entry-level model went from $699 to $829; in 2022, the company discontinued the $699 iPhone Mini and replaced it with the $899 Plus model; and in 2023, the starting price of the Pro Max increased from $1099 to $1199. If Apple raises prices again this year, management is unlikely to attribute it to tariffs. IDC data indicates that the average selling price of smartphones globally is rising, and prices for components such as camera modules and chips have been increasing in recent years. Apple is more likely to focus on improvements in the features of the new device, while subtly indicating price changes.

Conclusion

It remains to be seen whether Apple will raise the prices of the iPhone 17 or not. However, expectations suggest that the company may resort to different strategies to increase revenue, such as eliminating models with lower storage capacity and forcing users to choose models with higher and more expensive storage capacity. Regardless of the pricing strategy Apple pursues, the launch of the iPhone 17 is sure to generate a lot of buzz in the smartphone market.