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Home Technology

iPhone 14 could cost $100 more than iPhone 13

TOPFM NEWS by TOPFM NEWS
July 11, 2022
in Technology
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iPhone 14 could cost $100 more than iPhone 13
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according to Wedbush analyst Dan Ives.

Rising component costs could make iPhone 14 more expensive

Ives told The Sun that “a $100 price increase is coming for the iPhone 14.” Apple could be forced to make this decision due to increasing costs across its supply chain.

Small price hikes are always manageable and accounted for in the manufacturing cost. But rising inflation, supply chain disruptions and the semiconductor crunch may force Apple to pass the additional costs to customers this year.

Analyst Ben Wood of CCS Insight said he thinks “Apple will have some tough decisions to make on pricing on iPhone 14.” Apart from inflation and supply chain disruption, the company also will need to account for the rising exchange rates in countries like the United Kingdom and India.

However, Wood told The Sun that “given the cost-of-living headwinds, Apple may decide that increasing prices could be counterproductive.”

Rumors suggest Apple could continue to use last year’s A15 Bionic chip on the regular iPhone 14 models. The newer and faster A16 Bionic will only power the iPhone 14 Pro series. Apple is seemingly making this move due to rising costs and supply-chain costs. The cost-saving move will help keep the more affordable model’s pricing in check.

iPhone 14 lineup will carry a higher starting price

Apple reportedly will discontinue the $699 5.4-inch iPhone mini this year. Instead, a new 6.7-inch iPhone 14 Max model supposedly will join the lineup that will sit above the 6.1-inch model.

The discontinuation of the mini model will lead to the iPhone 14 lineup carrying a higher starting price tag. So, instead of $699, pricing for iPhone 14 will start from $799. The new 6.7-inch Max model likely will cost another $100 more.

However, consumer spending could slow down in the second half of the year as inflation takes an increasingly bigger bite out of paychecks. Apple raising the iPhone 14 lineup’s pricing could backfire and substantially slow down sales.

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