Apple Raises iPhone Prices by $100 Across Older Models on September 10

Apple reversed decades of pricing tradition on September 10 by raising prices on older iPhone models by $100 instead of cutting them when new devices arrive. The iPhone 16 now costs $799, the iPhone 17 costs $899, and the iPhone Air costs $1,099. Memory and storage chip costs have surged due to AI data center demand, forcing Apple to protect margins across its lineup.

Why Apple broke its pricing playbook

Historically, Apple cuts prices on older iPhones when new models launch. That changed Wednesday. The iPhone 16 had dropped to $699 after the iPhone 17 arrived last year, but now climbs back to $799. The iPhone 17e jumped from $599 to $699, and the iPhone Air from $999 to $1,099. Memory prices have quintupled since last fall, according to Apple executives, squeezing margins across the entire product line.

New iPhone 18 Pro and foldable Duo also cost more

The iPhone 18 Pro and Pro Max each cost $100 more than their iPhone 17 predecessors, starting at $1,199 and $1,299 respectively. Apple also unveiled its first foldable iPhone, the Duo, priced at $1,999 with a 7.6-inch inner display and 5.4-inch outer screen. New CEO John Ternus presented the devices at the Surprise and Shine event on Wednesday, emphasizing iPhone as central to Apple’s AI strategy.

Market reaction and investor outlook

Apple shares dropped 0.3% to $315.34 on the news, reflecting investor concern over the aggressive pricing. Meyka rates AAPL a B+ with a 12-month forecast of $346.41, suggesting limited upside from current levels. The RSI sits at 49.42, indicating neutral momentum, while analyst consensus remains Buy with 25 firms recommending purchase against 8 selling.

Global pricing pressure and India impact

The price increases are steeper outside the US. In India, iPhone prices rose approximately 20.5%, according to reports. Apple also discontinued the iPhone 17 Pro and Pro Max models entirely. The company cited component shortages and rising costs from AI companies and cloud providers building massive data centers as the primary driver of the strategy shift.

Final Thoughts

Apple’s price hike breaks tradition but reflects real cost pressures. With Meyka grading AAPL a B+ and forecasting $346.41 by September 2027, investors should watch whether demand holds as older iPhones become less attractive as budget options.

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The content shared by Meyka AI PTY LTD is solely for research and informational purposes.  Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.