Apple is allegedly planning to raise the prices of its upcoming iPhone 15 Pro and Pro Max models, aiming to increase revenue amid a projected slump in smartphone sales, as per a new report by Bloomberg.
The report states that Apple has set a target to produce approximately 85 million units of the iPhone 15 this year, a number not far from the 90 million units requested for iPhone 14 from its suppliers last year. Despite factors like inflation and lower demand for consumer tech, Apple hopes to maintain high revenue by increasing the prices of its more expensive iPhone models, according to “people familiar with the matter.”
Apple may face challenges in meeting its production targets. The company is reportedly experiencing display panel production issues for the iPhone 15 Pro and Pro Max, which could affect the number of units available at launch. Additionally, Apple had to cancel plans to increase iPhone 14 production by 6 million units last year due to weaker than expected holiday season demand. Global smartphone shipments are also predicted to decline by 3.2 percent in 2023, although the market is expected to recover next year.
The iPhone Pro and Pro Max models have historically launched with a starting price of $999 and $1,099, respectively, since the introduction of the iPhone 11 Pro in 2019. The report does not specify the extent of the price increase for the iPhone 15 models. However, standard iPhone 15 and iPhone 15 Plus pricing is expected to remain consistent with previous releases at $799 and $899, respectively.
Apple CEO Tim Cook expressed confidence in consumers’ willingness to purchase the flagship offerings, even with a price increase. During an earnings call in February, Cook stated, “I think people are willing to really stretch to get the best they can afford in that category.”
Apple’s decision to raise the prices of iPhone 15 Pro and Pro Max models reflects its strategy to maintain revenue growth amid challenging market conditions. The success of this approach remains to be seen as the smartphone industry navigates through changing demands and economic uncertainties.