Apple’s iPhone 15 Pro Max Price Bump Is Part of Subtle Revenue-Boosting Strategy
Apple Inc. enacted its long-awaited iPhone 15 Pro Max price increase with as much subtlety as possible, part of an effort to wring more money from consumers without triggering sticker shock. On Tuesday, the company boosted the price of just one iPhone model — the top-end iPhone 15 Pro Max, which climbs by $100 to $1,199 — while leaving the other three new versions unchanged. And even the now-costlier new phone will come with twice as much storage, letting Apple argue that it wasn't really a price increase at all.
The move fits a pattern for the company, which needs to tread lightly with inflation-wary shoppers. Apple isn't making dramatic changes to its sticker prices, but it's finding new ways for shoppers to spend more. The company is packing its upscale iPhones with exclusive features, such as better zoom lenses and titanium frames, to nudge shoppers toward bigger-ticket items.
Even Apple's switch to a USB-C port on the iPhone — an EU-mandated move the company initially opposed — will bring fresh ways to generate revenue. If consumers want their AirPods to have the same connector as the latest iPhones, they'll have to spend $249 for a new pair. If they want to use their old Lightning chargers, they can buy an adapter from Apple for $29.
Some investors had hoped that Apple would raise prices more broadly, one reason they gave a cool reaction to Apple's iPhone event Tuesday, according to Evercore ISI analyst Amit Daryanani. The shares slipped 1.7% to $176.30.
But Apple is contending with an industrywide smartphone slump, giving it less leverage to increase prices. Worldwide smartphone shipments fell nearly 7% last quarter, according to IDC, hitting the company's biggest source of revenue. Troubles in China, where it faces a
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