Reports indicate that due to surging storage chip costs, Apple (AAPL.US) may raise the price of its iPhone 17 series as early as Monday, August 10, breaking its tradition of not adjusting prices before new product launches. Additionally, well-known Apple leaker Mark Gurman has revealed that the company is most likely to hold its annual fall event on September 9. Earlier, Apple CEO Tim Cook publicly warned of an industry crisis, describing the current storage chip price surge as a "once-in-a-century flood," making product price increases unavoidable.
The core reason for the current spike in storage chip prices is the global AI infrastructure boom, which has significantly squeezed chip supply for consumer electronics. This has led to persistently rising costs for key components like DRAM and NAND flash, putting immense pressure on Apple's supply chain. Apple has already raised prices across several product lines, including the iPad, Mac, Apple TV, Apple Vision Pro, and HomePod, but prices for the iPhone, AirPods, and Apple Watch have remained unchanged. However, recent reports suggest Apple will adjust the iPhone 17 series pricing on August 10, alongside changes to its production plans.
Breaking Tradition: Early iPhone 17 Price Adjustment Could Reshape New Product Pricing Strategy
Earlier, market consensus suggested that Apple's next iPhone price adjustment window would be delayed until the fall, when the iPhone 18 Pro models launch, with the new phones likely facing supply constraints and inventory shortages. Multiple questions now remain: Will the price adjustment cover the entire iPhone 17 lineup? Will the iPhone Air model be affected? Will the currently-selling iPhone 16 series follow suit with a price hike? More critically, is this round of price increases a short-term cost-hedging move, or a shift in Apple's long-term pricing strategy, and how long will the price hike cycle last?
Looking at Apple's pricing patterns over the past few years, the process after each September new product launch has been consistent: First, when a new series is released, the two Pro models are discontinued and removed from sale. Second, prices for the current non-Pro models decrease. For example, last September, the iPhone 16 and iPhone 16 Plus both saw price drops of $100, now selling for $699 and $799, respectively. This price adjustment could influence market expectations for the iPhone 18 series' pricing. Reports suggest that if the iPhone 17 Pro's price rises from $1,099 to $1,199, it could confirm industry rumors that the iPhone 18 Pro series might see a $200 price increase. Similarly, if the standard iPhone 17 rises from $799 to $899, its price baseline would shift upward even after a routine price drop following the September launch. Notably, the market expects the standard iPhone 18 may be delayed until spring 2027.
A recent report from TrendForce indicates that rising component costs, led by memory chips, are driving up the total cost of the upcoming iPhone 18 series. For instance, the 256GB version's BOM (Bill of Materials) cost is estimated to increase by about 38% year-over-year, inevitably leading to higher retail prices. To avoid dampening consumer demand, Apple may choose to control the price increase by reducing its profit margins, in exchange for market share expansion.
Apple's Fall Event Potentially Scheduled for September 9
From a consumer perspective, August is traditionally a slow sales month for the iPhone. Shoppers typically hold off, waiting for the new models in September and anticipating price drops on older ones. However, if Apple actually adjusts prices on August 10, it would disrupt the typical buying cycle. Notably, prominent leaker Mark Gurman stated that Apple is most likely to hold its fall event on September 9. Apple's biggest annual hardware showcase is approaching, and it will also mark the debut of new CEO John Ternus. Historically, Apple holds its new iPhone launch event on the second Tuesday or Wednesday of September. Gurman noted that the highlight of this year's fall event is expected to be the foldable iPhone. Additionally, Apple will likely release the iPhone 18 Pro and Pro Max, the Apple Watch Series 12 and Ultra 4, along with a new Apple TV set-top box and a HomePod mini.
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