There are new shiny iPhones, so Apple is making you pay more for older models 

Apple connected Wednesday unveiled its caller iPhone 18 and its archetypal foldable iPhone, the iPhone Duo. But amid each the attraction connected Apple’s newest and astir costly devices, there’s different change: Apple is raising the terms of its existing iPhone models by $100.

Starting today, customers volition announcement a terms hike for existing models connected Apple’s online store, including starting prices for iPhone 16 astatine $799, iPhone 17e astatine $699, iPhone 17 astatine $899, and iPhone Air astatine $1,099. 

The terms increases are adjacent steeper successful immoderate planetary markets. In India, for example, prices person reportedly risen by astir 20.5%. The institution besides discontinued the iPhone 17 Pro and iPhone 17 Pro Max.

The strategy is an antithetic 1 for Apple. Traditionally, the accomplishment of a caller procreation of iPhones means older models go cheaper.

However, the terms hike wasn’t wholly unexpected. Speculation had been gathering that Apple could rise prices arsenic it introduced its next-generation iPhones. One of the biggest pressures is simply a planetary shortage of representation and retention chips. Demand for those components has surged arsenic AI companies and unreality providers physique retired progressively monolithic information centers.

In a June interrogation with The Wall Street Journal, erstwhile Apple CEO Tim Cook acknowledged that rising constituent costs could yet unit the institution to rethink its pricing strategy. He said Apple could nary longer afloat sorb the rising costs of representation and retention chips.

About a week aft those comments, the institution raised prices crossed its Mac and iPad lineups.

Other reasons Apple whitethorn see expanding iPhone prices are to stay competitory with rising prices from rivals similar Samsung and Google. Additionally, Apple mightiness consciousness that its caller Upgrade program, which allows customers to dispersed the outgo of an iPhone done manageable monthly payments, could cushion the interaction of a terms hike, making it little noticeable to consumers.