With Apple widely expected to unveil the new iPhone 14 lineup at its upcoming event next Wednesday, there is still a big question mark surrounding how much the tech giant Apple will charge the prices of its latest and greatest smartphones.
Apple has a large group of some loyal customers and yet with some economic problems in the whole world, it may be difficult to convince people to upgrade their iPhones.
“Apple faces a real pricing conundrum,” said Ben Wood, senior analyst at market research firm CCS Insight. In addition to the pressures of inflation and the cost of living that have hit consumers, he noted that Apple is at the same time facing rising costs associated with iPhone components and tools.
“I expect Apple will probably have to raise prices,” Wood told CNN Business. But given the stress consumers are facing, he believes Apple will also do “everything it can to make that as minimal as possible.”
In a research note on Monday, analysts Dan Ives and John Katsingris of Wedbush Securities expected Apple to raise the price of its latest new iPhone 14 model by about $100.
“We believe a $100 price increase for the iPhone 14 Pro/Pro Max is likely in store due to higher component prices as well as added functionality in this new version,” the note stated. The cameras on the upcoming iPhone Pro models are rumored to be upgraded to justify the price increase, among other improvements.
Wedbush analysts also forecast strong underlying demand for the next iPhone, estimating that about 240 million of the billion iPhone users worldwide haven’t upgraded their phones in more than three and a half years.
Wood also noted that Apple’s iPhones are in some ways insulated from macroeconomic pressures, and consumers increasingly view smartphones as “almost essential” compared to some other tech gadgets.
“Whether or not you really need to have an iPhone is the kind of question iPhone users get asked, but the people who already have an iPhone are incredibly loyal,” Wood said.
He added: “I think Apple has some advantages over competitors.” “And there are people always waiting for the new iPhone.”
The event will be broadcast on Apple’s website from the company’s headquarters in Cupertino, California, starting at 1 p.m. EST.
