Apple hikes prices of four iPhone models by $100 amid new iPhone 18 launch
Apple increased the starting prices of the iPhone 16, iPhone 17, iPhone 17e and iPhone Air by $100 each on its online store, coinciding with the unveiling of the iPhone 18 Pro series.
Apple raised the launch prices of four existing iPhone models on its website following the announcement of the iPhone 18 Pro and iPhone 18 Pro Max. The iPhone 16 now starts at $799, the iPhone 17e at $699, the iPhone 17 at $899 and the iPhone Air at $1,099, each reflecting a $100 increase from previous pricing.
The price adjustments come as Apple discontinued the iPhone 17 Pro and iPhone 17 Pro Max in favor of the new 18 Pro lineup. The changes align with earlier speculation that the company might raise prices for the 17 series when the 18 series launches.
"We are no longer able to absorb the increased cost of memory and storage chips," CEO Tim Cook told The Wall Street Journal, citing heightened demand from AI and cloud providers.
Cook added that the current memory shortage is unprecedented in recent decades, comparing it to a historic flood. The semiconductor supply constraints are attributed to the rapid expansion of AI infrastructure, which has driven up component costs across the industry.