Apple has made a global price increase for the iPhone 14 series, with only China and the US exempt from the price increase. Now, a new iPhone 15 leak claims that costs have risen even more, and it seems like no one will be able to escape the hike this time around.
In a new tweet, popular anonymous industry insider LeaksApplePro revealed that Apple’s widely leaked new flagship iPhone 15 Ultra “will cost significantly more to produce than the iPhone 14 Pro Max.” It does open the door for price increases across the board.
For those unfamiliar with the iPhone 15 Ultra, it is expected to replace the Pro Max in Apple’s upcoming line of iPhones. And “replacement” is a key part of it.
Initially, the Ultra was billed as the fifth iPhone 15 model, a new hero device that showcased Apple at its best. That strategy works for the company’s top-of-the-line iPad Pro and flagship MacBook Pro models ($2,000 and $6,100, respectively). Apple’s highest-performing M1 chip is also known as “Ultra.”
Fears of a massive price hike eased when further leaks suggested that the iPhone 15 Ultra was simply a rebranding exercise. Apple would simply replace the iPhone 15 Pro Max with the iPhone 15 Ultra, and the range — the iPhone 15, iPhone 15 Plus, iPhone 15 Pro, and iPhone 15 Ultra — would be simpler than the words X, XR, XS, and Pro Max. salad of the year. But not so fast.
LeaksApplePro has more information on the increased production costs of the iPhone 15 Ultra. Talk to me and the leaker says the new BOM will go up to $100.
While that doesn’t sound like “much more,” it’s important to remember that this is Apple’s cost, not the buyer’s. By comparison, Nikkei Asia revealed last month that Apple was selling components for the iPhone 14 Pro Max at $501, with the smartphone starting at $1,099. That said, it is an oversimplification to say that $1 in component cost equals $2 added to the asking price.
“The A16 [iPhone 14 Pro] is $50 more expensive than the A15 [iPhone 14 and 13] to be produced,” LeaksApplePro explained, “but the Pro is still surprisingly priced at $999…Apple’s pricing policy is weird. If I have to guess, maybe a $150 raise (but that’s just a guess).”
Another factor is how Apple decides to price the iPhone 15 lineup internationally. For the iPhone 14 series, Apple effectively subsidized prices in the US and China by raising prices in the rest of the world (up to 20% in some countries).
“It’s a pretty common thing,” LeaksApplePro notes, “and if your costs go up, you charge the least compliant to the ‘compliant’ market, so everyone’s happy.”
The problem is that this is unsustainable in the long run, and the US and China are more likely to bear the greatest price for this generation. A silver lining? At least you still have plenty of free time.
LeaksApplePro has more information. The leaker highlights Apple’s next-generation A17 chip as a major factor, noting that it “will definitely be more expensive.”
This is an interesting twist because 1. The iPhone 14 Pro A16 is twice as expensive as the A15 used in the iPhone 13 and iPhone 14 and 2. The Daily Business News reported in September that Apple rejected a price increase for chips from TSMC, its main chip supplier.
“In the beginning, it was rumored in the industry that TSMC would raise prices next year, depending on the manufacturing process, by about 6% to 9%. However, it was later rumored that there was a negotiation and revision, and the increase jumped by 3%, and the growth rate of mature processes was 6%,” TSMC explained. “However, the latest rumor is that Apple, a major customer, is refusing to raise the price.”
Given the strain on Apple’s supply chain that was acknowledged last week, it’s entirely possible the two sides could reach a compromise. However, the issue continues to affect iPhone 14 Pro and Pro Max shipments, with Apple stating: “We now expect iPhone 14 Pro and iPhone 14 Pro Max shipments to be lower than previously expected, and customers will experience longer waits Time.” Eager to receive their new products. ”
LeaksApplePro also highlights a second, more obvious factor: the move to a titanium chassis. Whether this will happen remains to be seen, but as noted below, the material is 35 times more expensive than the stainless steel used in the iPhone 14 Pro and Pro.
Titanium is as strong as stainless steel and only 40% the weight of stainless steel, which is an important factor because at 240 grams, the iPhone 14 Pro Max is one of the heaviest phones in the world. Apple can also compromise and double the strength of the frame by making the phone lighter than its predecessor. Something that helps sell the “Ultra” moniker.
Apple iPhone 15 Ultra expected to feature dual front-facing cameras
Rumors swirled last month that the iPhone 15 Ultra would feature impressive upgrades such as dual front-facing cameras and a titanium chassis, a material that costs around 35 times as much as the Pro Max’s stainless steel. So the latest information from LeaksApplePro makes sense.
While rising production costs don’t always lead to price increases, you should be prepared for “big hikes” in their costs. Apple has profit margins to keep. Plus, the company has a clear pricing structure and doesn’t expect one model to be positioned much higher than the others — there’s always incremental. So if UItra goes up, the rest of the range will have to close the gap to meet it.
Yes, in a time of extreme inflation and a cost-of-living crisis, it’s shocking to think that Apple will raise iPhone prices for the second year in a row. U.S. customers are also now spending 15% more on average on iPhones. That’s because the $899 iPhone 14 Plus replaces the $699 iPhone 13 Mini, so the $799 iPhone 14 becomes the new entry point as their overwhelming upgrade drives more customers toward professionals.
So get ready for more iPhone price hikes in 2023. The good news? At least it looks like you’ll get USB-C in return…
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