Renowned Wall Street analyst Dan Ives has predicted that Apple will raise the prices of its forthcoming iPhone 15 lineup, marking the first price hike in the United States since 2017. Ives, known for his accurate predictions, shared his insights in a note obtained by Barron’s and elaborated on his findings during an interview with CNBC.
Strategic Chess Moves by Apple
Drawing from his successful prediction of international price increases for the iPhone 14, Ives expects Apple to adopt a similar strategy for the iPhone 15. While he did not specifically mention U.S. prices, his forecast of rising Average Selling Prices (ASPs) indicates an impending price adjustment for the new iPhone models, scheduled to launch this September.
The anticipated price hikes are expected to be more pronounced for the premium iPhone 15 Pro models, potentially reaching up to $200, according to multiple analysts, including Forbes. Currently, the iPhone 14 series is priced starting at $799 for the standard model, $899 for the iPhone 14 Plus, $999 for the iPhone 14 Pro, and $1,099 for the iPhone 14 Pro Max.
Positive Outlook on Apple’s Services Business
Ives also expressed optimism about Apple’s Services business segment, commending the company’s strategic vision. He projects that Apple’s valuation will increase from its current $2.85 trillion to an estimated $3.5 trillion to $4 trillion within the next 18 to 24 months.
Additionally, Ives highlighted a significant market opportunity for Apple, with approximately 250 million iPhone units that have not been upgraded in the past four years. If a substantial number of these users decide to replace their devices this year, it could generate substantial revenue for Apple.
Strong Sales Forecast
Ives predicts that Apple will ship between 235 million and 240 million units of the iPhone 15 in 2023. Even with an average price increase of $100, his forecast indicates an additional $23.5 billion in revenue for Apple.
The anticipated price hike for the iPhone 15 reflects Apple’s confidence in the demand for its premium devices and the company’s ability to command higher prices in the market. Despite the potential increase, Apple is expected to continue attracting customers with its advanced features, cutting-edge technology, and seamless integration with its ecosystem.
The iPhone 15 is rumored to come with several enhancements, including improved camera capabilities, faster processors, and a high-refresh-rate display. These upgrades, combined with the brand’s loyal customer base, are likely to contribute to strong sales for the new iPhone lineup.
As Apple continues to prioritize innovation and deliver exceptional user experiences, it remains a dominant player in the smartphone industry. While price increases may impact some consumers, the overall appeal of Apple’s products and ecosystem is expected to drive continued success for the company.
In conclusion, the outlook for Apple’s iPhone 15 launch suggests a potential price adjustment and strong sales, presenting both opportunities and challenges for the tech giant in the highly competitive smartphone market. As Apple continues to innovate and capitalize on its Services business, it is poised for continued growth and success.
