That New iPhone May Get More Expensive
The iPhone reportedly will become more expensive as Apple adds new features. But will users be willing to pay more for it? The post That New iPhone May Get More Expensive appeared first on 24/7 Wall St..
According to The Wall Street Journal, the Apple Inc. (NASDAQ: AAPL) iPhone will probably become more expensive. Apparently, the company will not discuss the effects of tariffs. Instead, some iPhone prices will rise as Apple adds features.
24/7 Wall St. Key Points:
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The iPhone reportedly will become more expensive as Apple Inc. (NASDAQ: AAPL) adds new features.
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But will users be willing to pay more for it?
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The paper reports, “New iPhones set to be released in the fall include some design and format changes, including an ultrathin design.” Samsung has just released an ultrathin phone called the S25 Edge. Samsung management hopes the product will chip away at Apple’s market share.
Apple management cannot hide that tariffs are a financial problem. In March, Apple raced to get more iPhone inventory to the United States to avoid tariffs that would start in April. CEO Tim Cook also said Apple would move most of its manufacturing to India. However, he cannot solve the problem of more expensive models that the company still makes in China. Apple says that tariff costs will hit it with $900 million in expenses in the current quarter.
Apple’s dilemma is whether customers will pay more for iPhones. The iPhone 16 Pro Max retails for $1,199, but it is trying to keep customers with the much less expensive iPhone 16e, which retails for $599.
Apple has two hurdles, one of which is old. iPhone upgrades have been modest when the company has released the most frequent models, which it does once a year. The camera is better, and the chips are faster. Many customers cannot tell the difference or do not care.
Apple’s second problem is more recent. Its AI product is considered weak compared to other large tech companies. It has delayed the release of its Siri AI upgrade until next year. At the same time, the competition continues to release more advanced products. New York Times’s Kevin Roose recently wrote, “Apple is not meeting the moment in AI.”
In the meantime, users can easily download every major AI app onto an iPhone.
If Apple wants to raise iPhone prices, it will need more than a better camera.
Why Is No One Talking About Apple’s Long-Term Artificial Intelligence Plans?
The post That New iPhone May Get More Expensive appeared first on 24/7 Wall St..
