Apple has raised prices on its existing iPhone lineup in the United States and international markets, bucking its traditional strategy of discounting older models after a new flagship launch. The adjustments follow surging component costs driven by artificial intelligence demand, with some older devices now costing more than they did at their initial release.
When Apple unveiled its latest hardware lineup, observers expected the usual post-launch discount cycle for previous-generation devices. Instead, the company implemented unexpected price increases across multiple older models, affecting shoppers looking for bargains on past releases.
Global Price Hikes Reverse Apple’s Traditional Discount Strategy
Historically, the arrival of a new iPhone generation triggered immediate price cuts on older hardware, offering consumers a more accessible entry point into the ecosystem. This year, Mashable reported that patient shoppers faced price bumps instead of reductions. The iPhone 16 had been available for $699 before Apple’s event on Wednesday, having received a $100 price cut when the iPhone 17 was released last year. That reduction has now been reversed, putting the iPhone 16 back up to $799 — the same price it was when it launched two years ago in 2024. Meanwhile, the iPhone 17, 17e, and Air are now more expensive than they were at launch.
The budget iPhone 17e was originally available for $599 when it was announced in March this year, but it will now set you back $699. Apple’s iPhone 17 launched at $799 last September, but its price has now been increased to $899. Finally, the iPhone Air launched at $999 alongside the iPhone 17, but will now cost buyers $1,099. Newly announced flagships also reflect the trend: the newly announced iPhone 18 Pro and Pro Max are also $100 more expensive than last year’s 17 Pro and Pro Max at launch, starting at $1,199 and $1,299, respectively.
While U.S. price increases ranged from 10% to 21%, Reuters noted that international markets experienced much sharper adjustments. Prices of existing iPhones in India increased by up to 41% within hours of unveiling newer models, bucking its usual practice of discounting older variants and marking one of the steepest hikes in any market where it has repriced this year. India is one of Apple’s fastest-growing markets and now also assembles a large share of the iPhones it sells globally. However, that hasn’t insulated Indian buyers from price increases: import duties for components and an 18% goods and services tax still push iPhone prices in India well above U.S. levels.
Photo: Reuters
The hikes followed Apple’s September event, dubbed ‘Surprise and Shine,’ where new Chief Executive John Ternus unveiled Apple’s first foldable phone, the iPhone Duo. Following the event, the price revisions affected the iPhone 17, iPhone 17e, iPhone Air, and iPhone 16. The India price for the lower storage variant of the iPhone 17 rose nearly 21% to 99,900 Indian rupees ($1,048), while the 512GB version moved from Rs 1,02,900 to Rs 1,24,900, resulting in a Rs 22,000 increase. The iPhone Air recorded the sharpest jump in the lineup at a 41% increase to 224,900 Indian rupees ($2,359) for its one terabyte variant. Additionally, the iPhone 17e 256GB model is now priced at Rs 79,900 compared to Rs 64,900 earlier, giving buyers an additional Rs 15,000 increase. The increases drew swift reaction on social media in India, with some commentators arguing the pricing pushes the iPhone further into luxury territory for Indian buyers, while many also pointed to the India pricing of the foldable iPhone, which is $1,100 costlier than in the U.S.
Memory Costs and Manufacturing Pressures Drive Up Component Prices
The underlying driver behind the widespread repricing is a squeeze on electronic components. Mashable noted that the artificial intelligence boom has significantly increased demand for memory chips, driving up manufacturing costs as tech companies compete for limited supplies. Apple had previously announced plans to raise iPhone prices globally, citing increasing memory and storage chip costs as a surge in AI-driven demand for data centers forced consumer electronics companies into a fierce competition for dwindling supplies.
Bloomberg subsequently reported that Apple was preparing to raise the prices of its iPhones, having already done so for other products such as the iPad Air, MacBook Air, and Mac Studio, alongside the quiet adjustments to the iPhone 16, 17, 17e, and Air coinciding with the announcement of the new iPhone 18 Pro, 18 Pro Max, and foldable Duo. Some commentators had expected Apple to launch the iPhone 18 Pro at $1,099, absorbing higher manufacturing costs to keep it in line with the iPhone 17 Pro’s pricing, which was a reasonable conclusion to draw considering Apple’s past pricing trends. However, it seems the tech giant isn’t prepared to reduce its profit margin quite that much this year. Apple’s recent Q3 2026 results reported a net quarterly profit of $29.8 billion, with net iPhone sales having increased 22 percent to $54.25 billion.
Apple's Price Hike: iPhone 18 Prices Soar in India, Why Are Older iPhones Getting Costlier Too?
Sophie is a tech innovator and acclaimed tech writer recognized by the Online News Association. She translates the fast-paced world of technology, AI, and digital trends into compelling stories for readers of all backgrounds.
