The moment of truth for Apple has arrived: iPhone 15 Pro may see a price increase of up to $100.

Wallstreetcn
2023.09.06 19:36
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In recent years, Apple has achieved significant results by guiding consumers to purchase high-end models. Even if iPhone sales remain stagnant, Apple's revenue and profit have increased. Analysts warn that this strategy may reach its limit.

Apple's flagship product, the iPhone, is about to face a new challenge.

Some analysts predict that at the new product launch event early next Wednesday Beijing time, Apple may increase the starting price of the high-end iPhone 15 by as much as $100 compared to the previous generation, which means that the high-end iPhone could see a maximum price increase of $100.

There have been rumors of Apple raising prices before. In July of this year, it was reported by the media that Apple was considering raising the prices of its high-end iPhone Pro models. Apple's goal is to maintain stable iPhone shipments as global smartphone sales are expected to decline, and the potential price increase of the iPhone Pro models could lead to increased overall revenue.

Wall Street CN previously mentioned that Guo Mingchi, known as the "most accurate Apple analyst" and the "prophet of Apple," recently revealed that the periscope lens is the biggest selling point of the iPhone 15 series.

Guo Mingchi stated that the iPhone will use a periscope lens system for the first time, achieving 5x or 6x optical zoom, far exceeding the current 3x zoom, making it the biggest camera upgrade in the iPhone 15 series, but only available on the high-end iPhone 15 Pro Max.

Previous analysis stated that the iPhone 15 and iPhone 15 Plus will use the same A16 chip as the iPhone 14 Pro series, while the Pro and Pro Max models will adopt the latest A17 chip. Compared to the A16, the A17 achieves a 31% increase in single-core performance and a 24% increase in multi-core performance, significantly improving overall performance.

In addition to the processor and camera functions, analysts predict that the iPhone 15 Pro series will feature a titanium alloy casing, which is lighter than the standard stainless steel material used in other iPhones. Apple will also replace the standard mute switch with a customizable button to perform certain actions, such as quickly opening the camera app or turning on the flashlight.

The media pointed out that in recent years, Apple's strategy of guiding consumers to purchase high-end models has achieved significant results. Even if iPhone sales remain stagnant, Apple's revenue and profits have increased. Higher prices will help offset the increased component costs due to inflation. However, some analysts warn that Apple's strategy is reaching its limits.

Josh Lowitz, co-founder of securities research firm Consumer Intelligence Research Partners (CIRP), commented that the iPhone Pro models "may have reached saturation point" and that "I don't think the iPhone Pro will attract a large number of new customers." One month ago, Apple released its Earnings Report, which showed a three-quarter consecutive decline in total revenue for the second quarter of this year, the first time in seven years. Although the revenue for the quarter was slightly higher than expected, iPhone sales exceeded expectations with a YoY decline of 2.5%. According to CIRP, the average selling price (ASP) of iPhones in the United States in the second quarter fell to $948 for the first time in 2017, both MoM and YoY.

In addition, one major change in the iPhone 15 series is reportedly the switch to a USB-C port, mainly to comply with EU regulations. Analyst David Vogt from UBS believes that this change to a new port may make consumers hesitate, as they would need to replace all their data cables.

According to the latest survey by the trading platform SellCell, if the iPhone 15 switches to USB charging, 66% of the 1,000 iPhone users surveyed said they would buy the iPhone 15, with 63% of them citing the switch to a USB-C port as the reason. Among the 1,000 Android users surveyed, 56% said they would continue to use Android.