Apple raises prices on older iPhone models by $100

• Apple has raised prices on existing iPhone models by $100.
• New starting prices include iPhone 16 at $799, iPhone 17e at $699, iPhone 17 at $899, and iPhone Air at $1,099.
• Price increases are reportedly around 20.5% in India.
• The iPhone 17 Pro and iPhone 17 Pro Max have been discontinued.
• The price hikes are attributed to rising component costs and competitive pressures.

Apple has implemented a $100 price increase on its existing iPhone models, a move that deviates from its typical strategy of reducing prices for older devices when new generations are released. The company unveiled its new iPhone 18 and foldable iPhone Duo, but the focus has shifted to the higher costs for previously available models.

Starting immediately, the online store reflects new starting prices for the iPhone 16 at $799, iPhone 17e at $699, iPhone 17 at $899, and iPhone Air at $1,099. These price hikes are more pronounced in international markets, with reports indicating a roughly 20.5% increase in India. Concurrently, Apple has discontinued the iPhone 17 Pro and iPhone 17 Pro Max.

This pricing strategy comes amid speculation fueled by a global shortage of memory and storage chips, which has driven up demand and costs for components. Former Apple CEO Tim Cook had previously acknowledged that rising component costs could necessitate a pricing strategy review, as the company could no longer fully absorb these increases. This follows similar price adjustments across Apple's Mac and iPad lineups.

Additional factors contributing to the price increase may include maintaining competitiveness with rivals like Samsung and Google, whose own device prices have risen. Apple's new Upgrade program, offering monthly payment options, might also be intended to mitigate consumer impact from the higher prices.