Apple Raises Prices on Existing iPhone Models Amid Memory Chip Shortage
Apple increased the starting prices of its existing iPhone models by $100, citing rising memory and storage chip costs. The company also discontinued the iPhone 17 Pro and Pro Max. This price hike is unusual, as older models typically become cheaper after new launches.
The price adjustment marks a notable departure from Apple's typical lifecycle strategy, where older models usually see price drops after a new launch. Instead, the company has raised the entry cost for its previous generation devices, while simultaneously retiring the high-end Pro variants from the prior lineup.
The underlying driver is a surge in memory chip demand from AI infrastructure, which has pushed component costs beyond what Apple can absorb. This follows a similar price increase applied to its Mac and iPad lines, and the company's installment payment plan may soften the immediate financial sting for consumers.
This pricing shift could affect everyday consumers who seek budget-friendly iPhones, as the entry point for older models has risen. It may also signal a broader industry trend where hardware costs are passed on to buyers due to AI-driven component shortages. While the monthly payment option could mask the immediate impact, the long-term affordability of premium smartphones might diminish, potentially pushing some users toward cheaper Android alternatives or holding onto their devices longer.