Apple will announce its latest hardware products, including new iPhone 14 models, at its launch event Wednesday, and analysts say customers should expect to pay even more for the higher-end models this year.
Bernstein analyst Toni Sacconaghi said in a Tuesday note that Apple will likely raise prices on its iPhone 14 Pro models by $100 over last year’s iPhone 13 Pro. That sentiment was echoed in notes from JPMorgan and Credit Suisse.
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Apple’s iPhone 13 Pro starts at $999 while the iPhone 13 Pro Max, which has a bigger screen, starts at $1,099.
Sacconaghi said Apple is likely to retire the $699 iPhone 13 mini and replace it with a more expensive and larger iPhone 14 Max, which he said will cost about $899. The iPhone 14 Max may help Apple increase the average selling price of its iPhones by offering the much-larger screen that has otherwise been reserved for the more expensive iPhone Pro Max models. Apple is also expected to sell a standard iPhone 14 with the same size screen as the iPhone 13.
Credit Suisse analysts said they’ll be watching whether price increases impact demand in countries where the U.S. dollar has strengthened.
“While we think there will be some pressure, we believe the proliferation of installment plans will significantly lessen the impact as customers will only need to pay the equivalent of a few more dollars per month per device,” Credit Suisse analysts said.
Analysts at JPMorgan anticipate a price increase for iPhone 14 Pro models because of inflation and supply chain pressures, but they don’t expect Apple to raise prices for the regular iPhone 14. The analysts said a price bump would matter more for the company’s wearables like the Apple Watch.
“Pricing is a key watch-point in a tough macro which comprises inflationary pressures and pull back in consumer spending, but we believe it matters more for Wearables which are considered more discretionary purchases relative to iPhone by consumers,” they wrote in a Tuesday note.
Apple did not respond to a request for comment.
— CNBC’s Michael Bloom contributed to this report.
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