New Apple Exclusive Reveals iPhone 14 Price Shock
07/17 Update below. This post was originally published on July 14
Apple leaks have revealed that iPhone 14 Pro models will receive multiple exclusive upgrades and higher pricing. But now a new report claims standard iPhone 14 models will also receive a price bump, despite being virtually unchanged from their predecessors.
speaking to The SunDan Ives, head of popular analyst group Wedbush Securities, cites supply chain prices as the driving force behind the increase.
“We believe a $100 price increase is coming for the iPhone 14,” Ives explained. “Prices have been increasing across the whole supply chain, and Cupertino needs to pass these costs to the consumer on this release.”
If correct, the iPhone 14 lineup would break down as follows:
- iPhone 14 – $899 (iPhone 13 $799)
- iPhone 14 Max – $999 (iPhone 13 Mini $699)
- iPhone 14 Pro – $1099 (iPhone 13 Pro $999)
- iPhone 14 Pro Max – $1199 (iPhone 13 Pro Max $1099)
While the $100 would hurt, particularly for standard models, which will sport the same design, rear cameras and chipset as the iPhone 13, the big financial hit comes with the range’s entry point jumping from $699 to $899. This near-30% increase results from Apple discontinuing the 5.4-inch iPhone 13 Mini in favor of a 6.7-inch iPhone 14 Max (also tipped to be called the ‘iPhone 14 Plus’), which pushes the iPhone 14 into the base model position.
07/16 Update: now the iPhone 14 range has started production, leaks are not only accelerating but they are adding a level of detail we have not seen before. Reliable anonymous leaker, ShrimpApplePro — the first leaker to reveal the new iPhone 14 Pro dual punch-hole redesign — has now published detailed schematics for the flagship iPhone 14 Pro Max via Weibo.
The headline news is the schematics again back up the large number of leaks claiming Apple will scrap the notch, though it is expected to be retained for non-Pro models. That said, at this stage, the more interesting information for me is the dimensions they reveal:
- iPhone 14 Pro Max – 160.71 x 78.78 x 7.85mm
- iPhone 13 Pro Max – 160.8 x 78.1 x 7.65mm
While the differences are slight, they eliminate one popular line of thought: that Apple would use the same chassis for iPhone 14 Pro models as their predecessors. Speculation will now accelerate about what those changes are.
My suspicion is the new 48-megapixel primary camera exclusive to Pro models will be a significant factor. But hopes that larger batteries are behind the increase seem unlikely based on a recent capacity leak. Leak season is well and truly open.
07/17 Update: LeaksApplePro has cast doubt on Wedbush’s pricing claims. The leaker, who has regularly provided iPhone pricing data in the past, told me the drive for Apple in 2022 is to widen the gap between Pro and non-Pro iPhone 14 models and price is one way that the company will do this.
“The difference between the iPhone 14 Max and iPhone 14 Pro is huge,” the leaker explained. “Apple is really trying to save as much money as possible with the iPhone 14 production, so I don’t think the company plans on the $100 raise Wedbush is talking about”
While this would be good news for buyers of standard models, LeaksApplePro does warn that Apple is looking to raise iPhone 14 Pro prices by at least $100. $799, $899, $1099, $1199 are the prices the insider believes Apple has pinned for the iPhone 14, iPhone 14 Max/Plus, iPhone 14 Pro and iPhone 14 Pro Max at present but they are not locked in:
“Apple could definitely change these prices, but right now that’s what’s being considered,” the leaker added.
This breakdown makes a lot of sense. By removing the Mini, Apple already increases the entry price for the iPhone 14 range to $799 from the $699 of the iPhone 13 lineup; and by using most of the same parts for standard iPhone 14 models as the iPhone 13, the company avoids major new costs.
This opens the door for higher iPhone 14 Pro pricing, greater hardware differentiation and increased upsell potential. If the leaks are correct, this will be a strategy which polarizes customers at a time of high global inflation. That said, my guess is there will still be queues around the block when these phones launch in late September/early October.
Such a chasm would cause genuine shock. It would also be a hard sell. Historically, Apple has kept previous generation iPhones on sale at lower prices after their successors’ launch. If Apple does this again, opting for a virtually identical iPhone 13 or even iPhone 13 Mini (which could be as low as $599) would be a no-brainer.
There is one popular industry counterpoint. That is, Apple will retain iPhone 13 pricing for the iPhone 14 and the lack of an iPhone 14 Mini will account for a $100 entry-level increase rather than the $200 gap discussed here. However, this doesn’t account for the hike in supply chain prices, so it may prove overly optimistic.
So should you upgrade? Throw in the red-hot rumor that iPhones will move from Lightning to USB-C in 2023 and, for me, I think this is an upgrade year to forget unless you’re in desperate need. That said, based on supplier deposit sizes, it looks like another super cycle regardless.
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