11/15 update below. This post was originally published on November 12th
Apple introduced global price hikes for the iPhone 14 range, with only China and the United States avoiding these hikes. Now the costs of new iPhone 15 leak claims are skyrocketing, and it looks like no one is going to escape the hikes this time around.
In a new tweet, an insider tells the popular Anonymous industry leaks It revealed that the widely leaked new flagship iPhone 15 Ultra, “will cost much more to manufacture than the iPhone 14 Pro Max.” While it doesn’t give away how much this is, it does open the door for higher prices across the range.
For those who are not familiar with the iPhone 15 Ultra, it is expected to replace the Pro Max in Apple’s next iPhone lineup. And “replacement” is the crucial part of this.
Initially, the Ultra was billed as the fifth iPhone 15 model, a new hero device that showcases the best that Apple can make. It’s a strategy that matches the company’s flagship iPad Pro and MacBook Pro models ($2,000 and $6,100, respectively). Apple’s best-performing M1 chip is also named “Ultra”.
When more leaks revealed that the iPhone 15 Ultra is just an exercise in rebranding, fears of a major price increase eased. Apple will simply put the iPhone 15 Ultra in place of the iPhone 15 Pro Max, and the lineup – iPhone 15, iPhone 15 Plus, iPhone 15 Pro, and iPhone 15 Ultra – It will be clearer than the word authority X, XR, XS and Pro Max in recent years. But not so fast.
Update 11/14: LeaksApplePro has provided more information on the increase in manufacturing costs for the iPhone 15 Ultra. Speaking with me, the leaker said the bill for new materials would increase by up to $100.
While this may not sound like “much more,” it’s important to remember that this is the cost to Apple, not the buyer. For comparison, last month Nikki Asia He revealed that the components of the iPhone 14 Pro Max cost $ 501 to Apple, and the prices of the smartphone start at $ 1099. However, it is an oversimplification to say that $1 in component costs equals $2 added to the asking price.
The A16 [iPhone 14 Pro] It is $50 more expensive than the A15 [iPhone 14 and 13] For its manufacture,” LeaksApplePro explains, “yet the price of the Pro is still surprising at 999 … Apple’s pricing policy is strange. If I had to guess, that might be a $150 increase (but that’s just a guess).”
Another factor is how Apple decided to price the iPhone 15 range internationally. With the iPhone 14 lineup, Apple has effectively subsidized prices in the US and China by increasing prices for the rest of the world – in some states by up to 20%.
“It’s quite common,” notes LeaksApplePro, “if you increase your costs, you make the ‘compliant’ market pay for the less-compliant market, so everyone is happy.”
The problem is that this is not sustainable in the long run, making it likely that the US and China will bear the increased costs of this generation. The bright side? At least you still have plenty of time to save.
Update 11/15: LeaksApplePro contact me with more info. The leaker highlights Apple’s next-generation A17 chip as a key factor, stating that it “will definitely be more expensive.”
This is an interesting development because 1. The iPhone 14 Pro’s A16 Twice the cost Like the A15 used in the iPhone 13 and iPhone 14, and 2 Daily economic news It reported in September that Apple had refused to increase the price of the chip from TSMC, a major chip supplier.
Originally, there were rumors in the industry that the price of TSMC would rise next year, ranging from about 6% to 9% according to the operation, but later it was rumored that there was a negotiated correction, the increase jumped from 3%, the growth rate of mature operation is 6%, TSMC explains. “However, the latest rumor is that Apple, a major customer, refuses to raise the price.”
Given the pressures of Apple’s supply chain passed last week, There is a great opportunity to reach a compromise between the two parties. This issue continues to affect iPhone 14 Pro and Pro Max shipments, however, with Apple warning: “We now expect fewer iPhone 14 Pro and iPhone 14 Pro Max shipments than we previously anticipated, and customers will see longer waiting times to receive their new products.”
LeaksApplePro also highlights a second, more obvious factor: the move to a titanium chassis. It remains to be seen if this will happen, but, as noted below, this is a material 35 times more expensive than the stainless steel used in the iPhone 14 Pro and Pro.
Titanium is as strong as stainless steel at only 40% by weight, an important factor when the iPhone 14 Pro Max, at 240 grams, is one of the heaviest sheet phones in the world. Apple can also compromise and double the strength of the chassis while making the phone lighter than its predecessor. Something that would help sell the “Ultra” moniker.
Leaks surfaced last month stating that the iPhone 15 Ultra would get attractive upgrades such as dual front cameras and a titanium body, a material about 35 times more expensive than stainless steel in the Pro Max. So the latest LeaksApplePro information makes a lot of sense.
While increased manufacturing costs don’t always lead to price increases, you should prepare for when they cost “much more.” Apple has margins to maintain. Moreover, the company has a clear pricing structure, and it does not imply that one model is much higher than the rest – there are always increases. So if UItra rises, the rest of the range will have to close the gap to meet it.
Yes, in a time of hyperinflation and a cost-of-living crisis, it’s a shock to think that Apple will increase iPhone prices for the second year in a row. Even US customers are now spending up to 15% more on the average iPhone purchase. That’s because the $899 iPhone 14 Plus replaced the $699 iPhone 13 Mini, so the $799 iPhone 14 became the new entry point, while their underwhelming upgrades drove more customers to the pros.
So get ready for more iPhone price hikes in 2023. What’s the good news? At least it looks like you’ll get USB-C in return…
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