December 7, 2022

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Exclusively from Apple reveals a price shock for the iPhone 15

Exclusively from Apple reveals a price shock for the iPhone 15

11/15 update below. This post was originally published on November 12

Apple introduced Global price hike For the iPhone 14 range, with only China and the US escaping the increases. Now the costs of the new iPhone 15 leak claims are going up a lot, and it looks like no one will survive the increases this time around.

In a new tweet, Insider Industry Popular Anonymous leaks It revealed that the widely leaked new flagship iPhone 15 Ultra, “will cost a lot more to manufacture than the iPhone 14 Pro Max.” While it doesn’t give away how much this is, it does open the door to higher prices across the range.

For those unfamiliar with the iPhone 15 Ultra, it is expected to replace the Pro Max in Apple’s next iPhone lineup. And “replacement” is the crucial part of this.

At first, the Ultra was billed as the fifth iPhone 15 model, a new hero device that showcases the best that Apple can make. It’s a strategy that matches the company’s flagship iPad Pro and MacBook Pro models ($2,000 and $6,100, respectively). Apple’s top performing M1 chip has also been called “Ultra”.

When more leaks revealed that the iPhone 15 Ultra was just an exercise in rebranding, fears of a significant price increase eased. Apple will simply put the iPhone 15 Ultra in place of the iPhone 15 Pro Max, and the lineup – iPhone 15, iPhone 15 Plus, iPhone 15 Pro and iPhone 15 Ultra – You will be more visible than the authority of the words X, XR, XS and Pro Max in recent years. But not so fast.

Update 11/14: LeaksApplePro has provided more information about the increase in manufacturing costs for the iPhone 15 Ultra. Speaking to me, the leaker said the bill for new materials would increase by as much as $100.

While this may not sound like “much more,” it’s important to remember that this is the cost to Apple, not the buyer. For comparison, last month Nikki Asia He revealed that the components of the iPhone 14 Pro Max cost Apple $501, and the prices of the smartphone start at $1,099. However, it is an oversimplification to say that $1 for component costs equals $2 added to the asking price.

The A16 [iPhone 14 Pro] It is $50 more expensive than the A15 [iPhone 14 and 13] For its manufacture, “LeaksApplePro explains” However the price of the Pro is still surprising at 999… Apple’s pricing policy is weird. If I had to guess, that would probably be a $150 increase (but that’s just a guess).”

Another factor is how Apple decided to price the iPhone 15 range internationally. With the iPhone 14 lineup, Apple has effectively subsidized prices in the US and China by increasing prices for the rest of the world – in Some countries by up to 20%.

“It’s quite common,” notes LeaksApplePro, “If your costs increase, you make the ‘compliant’ market pay for the less compliant market, so everyone is happy.”

The problem is that this is not sustainable in the long term, which makes it likely that the United States and China will bear the increased costs of this generation. The bright side? At least you still have plenty of time to save.

Update 11/15: LeaksApplePro contact me with more information. The leaker highlights Apple’s next-generation A17 chip as a key factor, stating that it “will definitely be more expensive”.

This is an interesting development because 1. The iPhone 14 Pro’s was an A16 Double the cost Like the A15 used in the iPhone 13 and iPhone 14, and 2 daily economic news It reported in September that Apple refused to raise the price of the chip from TSMC, the main chip supplier.

Originally, there were rumors in the industry that the price of TSMC would rise next year, ranging from about 6% to 9% depending on the process, but later there were rumors of a negotiated correction, the increase jumped from 3%, the growth rate of the mature process was 6%, TSMC explains. “However, recent rumors are that Apple, a major customer, is refusing to raise the price.”

Given the pressures of Apple’s supply chain approved last weekThere is a great opportunity to reach a compromise between the two parties. This issue continues to affect iPhone 14 Pro and Pro Max shipments, however, with Apple warning: “We now expect iPhone 14 Pro and iPhone 14 Pro Max shipments to be lower than we previously expected, and customers will experience longer wait times to receive their new products.”

LeaksApplePro also highlights a second, more obvious factor: the move to a titanium chassis. It remains to be seen if this will happen, but, as noted below, this is a material that is 35 times more expensive than the stainless steel used in the iPhone 14 Pro and Pro.

Titanium is as strong as stainless steel at only 40% of the weight, which is an important factor when the iPhone 14 Pro Max, at 240 grams, is one of the heaviest panel phones in the world. Apple can also compromise on the strength of the chassis and double it while making the phone lighter than its predecessor. Something that would help sell the “Ultra” moniker.

Leaks last month surfaced that the iPhone 15 Ultra will have attractive upgrades such as Dual front cameras And the Titanium bodyIt is about 35 times more expensive than stainless steel in the Pro Max. So the latest LeaksApplePro info makes a lot of sense.

While increased manufacturing costs don’t always lead to price increases, you should prepare for when they cost “a lot more.” Apple has margins to maintain. Moreover, the company has a clear pricing structure, and it does not include a single model that is much higher than the rest – there are always increases. So if UItra goes up, the rest of the range will have to close the gap to meet it.

Yes, at a time of hyperinflation and a cost-of-living crisis, it’s shocking to think that Apple will increase iPhone prices for the second year in a row. Even US customers are now spending up to 15% more on the average purchase of iPhones. That’s because the $899 iPhone 14 Plus replaced the $699 iPhone 13 Mini, so the $799 iPhone 14 became the new entry point, while their disappointing upgrades Pay more customers to the pluses.

So get ready for more iPhone price hikes in 2023. What’s the good news? At least it looks like you will Get USB-C in return

More from ForbesApple supplier confirms iPhone 15 component plans

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