Analyst Eric Woodring stated that the magnitude of the price increases indicates that Apple is “protecting its gross margin rather than covering costs, particularly for memory.”
“Until now, we’ve absorbed these costs, but now we’re forced to start raising prices on some products,” Morgan Stanley quoted an Apple spokesperson as saying.
Previously, analysts had expected device prices to rise by only 5–10%. However, a more significant price increase could lead to a revision of the company’s revenue and profit forecasts.
The main question now is how consumers will react. Morgan Stanley believes that Apple still has strong pricing power thanks to its ecosystem. Most users upgrade their devices every few years, so a price increase of $200–300 amounts to just a few dollars in additional monthly costs.
At the same time, the bank is maintaining its forecast that the starting price of the iPhone 18 will rise by about $100. Apple’s final decision regarding its most important product remains unknown, but industry data does not indicate any reduction in plans to release new smartphones.
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