Apple Elevates Legacy iPhone Prices by $100 Following Hardware Unveiling

Apple introduced its next-generation iPhone 18 hardware alongside its initial foldable smartphone, the iPhone Duo, on Wednesday. Concurrently, the Cupertino technology giant implemented a $100 price increase across its legacy smartphone catalog, breaking with its historical pattern of discounting older device lines following flagship hardware unveilings, as first reported by TechCrunch.

Effective immediately on Apple's digital storefront, entry-level pricing for previous-generation models reflects the elevated rates. The iPhone 16 now starts at $799, while the budget-tier iPhone 17e begins at $699. Additionally, the standard iPhone 17 has been re-priced to start at $899, and the iPhone Air now demands a baseline price of $1,099. Alongside these adjustments, Apple formally retired the iPhone 17 Pro and iPhone 17 Pro Max from its primary sales lineup.

The hardware price adjustments extend globally, with certain international territories seeing significantly higher markups. For instance, retail prices for legacy iPhone models in India experienced an increase of approximately 20.5 percent. The decision to elevate costs on older inventory marks a notable departure from Apple's long-standing retail playbook, which typically moves previous-generation models down into lower cost tiers upon the introduction of newer flagship devices.

Market analysts and industry observers had previously anticipated potential price adjustments due to macro supply chain dynamics. The primary cost pressure stems from an ongoing international deficit of memory and storage semiconductors. Rapid infrastructure expansion by artificial intelligence developers and enterprise cloud computing providers has consumed substantial quantities of high-capacity memory components, driving up component procurement costs across the consumer electronics sector.

Executive statements earlier this summer foreshadowed the hardware markup. In an interview published by The Wall Street Journal in June, former Apple Chief Executive Officer Tim Cook indicated that rising supply chain expenditures might force the corporation to alter its hardware retail strategy. Cook stated at the time that Apple could no longer fully absorb the escalating procurement expenses associated with memory and storage chips.

Following Cook's public remarks in June by roughly one week, Apple instituted similar price increases across its Mac computer lines and iPad tablet families. Beyond supply chain headwinds, market dynamics indicate Apple may be adjusting rates to maintain parity with rival smartphone manufacturers, including Samsung and Google, both of which have recently raised prices on their respective flagship mobile devices.

To mitigate potential consumer pushback regarding elevated prices across both old and new hardware, Apple is leaning into its revised Upgrade program. The financing service enables consumers to distribute device costs over scheduled monthly installment payments, a structure designed to lessen the immediate financial impact of hardware price hikes on retail purchasers.