Apple Tests Limits for Most Expensive iPhones

livemint.com:

Apple is testing the limits of how much people will pay for premium iPhones as it tries to drive revenue despite slowing global demand for smartphones. The tech company is expected by analysts to raise prices by as much as $100 for some updated models of its flagship device when it unveils the iPhone 15 at an annual promotional event set for Tuesday. Those new iPhone Pro models are expected to include titanium casing, improved processors and photography features.

The move to steer consumers to premium models has worked phenomenally for Apple in recent years, boosting revenue and profit even when the number of devices sold has been stagnant. Potential price increases will help pay for growing component costs because of inflation, but some analysts have warned that the strategy will soon hit a ceiling. “The Pros have probably reached their saturation point," said Josh Lowitz, a co-founder of Consumer Intelligence Research Partners.

“I don’t think there are a ton of new iPhone Pro customers." For the first time since 2017, the average selling price of iPhones in the U.S. declined to $948 in the June quarter, lower than the same period last year and in the March quarter, the research firm said. IPhone sales fell 2.4% in the quarter ended July 1, slightly missing analyst expectations.

“The smartphone market has been in a decline for the last couple of quarters in the United States," Apple Chief Financial Officer Luca Maestri said in August. As Apple prepares for the iPhone 15 launch, its challenge will be to convince customers that the Pro features are enough to warrant a pricey upgrade. “It’s becoming harder and harder for consumers to distinguish what the new Pro features are," said Michael Gartenberg, a senior director on