The iPhone 15 Pro Max price increase is part of Apple's revenue-boosting strategy, according to Mark Gurman

Apple implemented its long-awaited iPhone price rise as quietly as possible, in an effort to get more money from customers without causing sticker shock.

On Tuesday, the firm raised the price of only one iPhone model — the top-end Pro Max, which now costs $1,199 (approximately Rs. 99,400) — while keeping the other three new models intact. Even the now-expensive new phone will have double the capacity, allowing Apple to argue that it wasn't really a price hike at all. 

The action is consistent with the company's need to tread softly with inflation-conscious customers. Apple isn't changing its prices dramatically, but it is finding new methods for customers to pay more. To entice customers to purchase higher-priced things, Apple is equipping its luxury iPhones with distinctive features such as improved zoom lenses and titanium frames. 

Even Apple's conversion to a USB-C connector on the iPhone, which the firm initially resisted, will provide new revenue streams. Customers who want their AirPods to use the same connection as the latest iPhones would have to pay $249 (about Rs. 20,700) for a new pair. They may utilize their previous Lightning chargers if they purchase an adaptor from Apple for $29 (about Rs. 2,400).

According to Evercore ISI analyst Amit Daryanani, some investors had thought that Apple would hike pricing more generally, which is why they reacted coolly to Apple's iPhone announcement on Tuesday. The shares slid 1.7 percent to $176.30 (approximately Rs. 14,600).

However, Apple is dealing with an industry-wide smartphone decline, leaving it less wiggle room to raise prices. According to IDC, worldwide smartphone sales declined roughly 7% in the fourth quarter, affecting the company's main source of income. Troubles in China, where it confronts an expanding government ban and competition from Huawei Technologies' smart new phone, have further added to the strain.

As a result, Apple will maintain the lower-end iPhone 15 at $799 (about Rs. 66,300), while the entry-level Pro model will stay at $999 (approximately Rs. 82,900) – a price that was considered outrageous when the iPhone X launched at that level in 2017.

Though the entry-level Pro Max will be approximately 10% more costly than the cheapest iPhone 14 Pro Max, it will have 256 gigabytes of storage instead of the previous 128 gigabytes.

Apple did not boost the tiers of its iPhone 15 Pro Max models with more storage, emphasizing the gradual nature of this price rise. The 512 GB version stays at $1,399 (about Rs. 1,16,000), while the 1 terabyte version remains at $1,599 (approximately Rs. 1,32,600). Even if prices remain same, Apple may make better margins since storage costs have decreased.

Outside of the United States, Apple is raising prices more aggressively. In Canada, the iPhone 15 Pro will cost $50 more (about Rs. 4,100), while the Pro Max will cost $200 more (approximately Rs. 16,600). The Pro Max will rise by around 14% in India.

However, prices are falling in certain nations. In the United Kingdom, the iPhone 15 Pro and Pro Max are 100 pounds (about Rs. 10,400) less expensive than its predecessors. 

Aside from iPhone pricing changes, Apple is increasing income through new services and accessories. The business added two additional storage levels to its iCloud online storage offering: a 6-terabyte plan for $30 (about Rs. 2,500) per month and a 12-terabyte option for $60 (approximately Rs. 5,000) per month. The most expensive iCloud plan was a 2-terabyte option for $10 (about Rs. 800).

The redesigned AirPods also reflect Apple's more aggressive strategy. When Apple began enabling wireless charging on the iPhone, it allowed AirPods consumers to purchase new covers with the same format rather than forcing them to buy brand new earphones. This time around, it isn't included a USB-C standalone case. 

Buyers of the iPhone 15 Pro and Pro Max will also require a new connection to achieve the faster data transfer rates promised by the device. Apple sells one for $69 (about Rs. 5,700).

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