A customer holds a new green Apple iPhone 13 pro shortly after it goes on sale inside the Apple Store on 5th Avenue in New York, March 18, 2022.
fresh mike | Reuters
Apple will announce its newest hardware product, including the new iPhone 14 modelat its launch event Wednesday, and analysts said customers should expect to pay more for the high-end model this year.
Bernstein analyst Toni Sacconaghi said in a Tuesday note that Apple is likely to raise the price on its iPhone 14 Pro models by $100 compared to last year’s iPhone 13 Pro. That sentiment echoed in notes from JPMorgan and Credit Suisse.
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The Apple iPhone 13 Pro starts at $999 while the iPhone 13 Pro Max, which has a bigger screen, starts at $1,099.
Sacconaghi says Apple will likely retire the $699 iPhone 13 mini and replace it with the larger, more expensive iPhone 14 Max, which he says will cost around $899. The iPhone 14 Max could help Apple increase the average selling price of its iPhones by offering a much larger screen that was previously reserved for the more expensive iPhone Pro Max models. Apple is also expected to sell a standard iPhone 14 with the same screen size as the iPhone 13.
Credit Suisse analysts said they will be watching whether rising prices have an impact on demand in countries where the US dollar strengthens.
“While we think there will be some pressure, we believe the proliferation of installment plans will significantly reduce the impact as customers only have to pay the equivalent of a few more dollars per month per device,” said Credit Suisse analysts.
Analysts at JPMorgan anticipate price increases for the iPhone 14 Pro models due to inflation and supply chain pressures, but they don’t expect Apple to raise prices for the regular iPhone 14. Analysts say the price hike will be more important for the company’s wearables such as the Apple watch.
“Prices are a key monitoring point in a tough macro comprising inflationary pressures and a pullback in consumer spending, but we believe it is more important for Wearables which are perceived as a freer purchase compared to iPhones by consumers,” they wrote in the report. Tuesday’s notes. .