Inflation and a murky economic environment are not slowing down the increase of the cost of services or products of big tech companies like Apple.
Bloomberg reported that Apple is potentially spiking the price of the new higher-end phone models, the iPhone 15 Pro and Pro Max, launching soon to help boost profits during a forecasted decline in smartphone sales.
Additionally, Apple requested suppliers to target 85 million units, 5 million less than last year’s ask, a direct effort to keep revenue high but produce a similar number of devices.
Hedging its bets in case of further decline, Apple has made a concerted effort to potentially offset any further declines like the forecasted 3.2% global demand decrease in 2023 for smartphone shipments by the IDC.
Only last year, demand was lackluster for smartphones which allegedly led Apple to slash iPhone 14 manufacturing by 6 million.
Another challenge the tech giant is reportedly facing is fabrication complications and chip shortages with display panels for the iPhone 15 Pro and Pro Max having been impacted.
These setbacks could potentially slow down production, thereby limiting the number of units available for the launch.
As of yet, Apple has not released the cost of the new phones launching soon, but there typically is a $100 difference from iPhone Pro and Pro Max models meaning the price differential will most likely increase.
Based on Apple CEO Tim Cook’s statements during an Apple earnings call last February, the tech powerhouse is unconcerned that any price increase would deter iPhone customers from purchasing the latest and greatest iPhone models.
“I think people are willing to really stretch to get the best they can afford in that category,” he said.
