Apple Raises Older iPhone Prices by $100 After September Event

Apple has raised prices on several older iPhone models in the U.S. by $100, a notable shift from its usual practice of discounting previous-generation devices after launching new hardware.

The change follows Apple’s Surprise and Shine event Wednesday, where the company introduced the iPhone 18 and its first foldable phone, the iPhone Duo. The updated iPhone lineup now lists the iPhone 16 starting at $799, the iPhone 17e at $699, the iPhone 17 at $899 and the iPhone Air at $1,099.

Apple has also discontinued the iPhone 17 Pro and iPhone 17 Pro Max. The combination of higher prices and discontinued Pro models changes the options available to customers who might otherwise have expected older devices to become cheaper after the latest iPhone launch.

iPhone price increases extend beyond the U.S.

The increases are steeper in some international markets. In India, iPhone prices reportedly increased by about 20.5%, showing that the size of the adjustment varies by market.

The increases were not entirely unexpected. Speculation about higher iPhone prices had been building ahead of Apple’s latest product launch as the company faced rising component costs.

Memory and storage costs add pressure

One factor cited in the source is a global shortage of memory and storage chips. Demand for those components has increased as AI companies and cloud providers expand large data centres, further pressuring supply and costs.

In a June interview with The Wall Street Journal, former Apple CEO Tim Cook acknowledged that higher component costs could eventually require Apple to reconsider its pricing strategy. He said the company could no longer fully absorb rising memory and storage costs.

About a week later, Apple raised prices across its Mac and iPad lineups. The latest iPhone changes extend that pricing shift to some of the company’s older smartphone models.

Apple may also be operating in a market where competing flagship phones from Samsung and Google are becoming more expensive. At the same time, Apple’s Upgrade program allows customers to spread the cost of an iPhone across monthly payments, potentially reducing the immediate impact of a higher upfront price.