There are new shiny iPhones, so Apple is making you pay more for older models
Source: TechCrunch ↗ (cross-verified by 2 outlets — full list below)
Apple announced its latest flagship devices, the iPhone 18 and the first foldable iPhone, the iPhone Duo, at the “Surprise and Shine” event on Wednesday, and simultaneously raised the starting prices of its current lineup by $100. The price hike applies to the iPhone 16 ($799), iPhone 17e ($699), iPhone 17 ($899) and iPhone Air ($1,099) on Apple’s online store, with even steeper increases in some overseas markets—India, for example, sees a rise of roughly 20.5 percent. In the same move, Apple discontinued the iPhone 17 Pro and iPhone 17 Pro Max, marking a departure from its usual practice of lowering older‑model prices when a new generation arrives.
The primary driver behind the increase is the mounting cost pressure from a global shortage of memory and storage chips, a shortage intensified by soaring demand from AI firms and cloud providers expanding massive data centers. Former Apple CEO Tim Cook hinted at this issue in a June interview with The Wall Street Journal, noting that Apple can no longer fully absorb rising component expenses and may need to adjust its pricing strategy. The company has already begun raising prices on its Mac and iPad lines, and the iPhone price bump aligns with a broader effort to offset higher supply‑chain costs while staying competitive with rivals such as Samsung and Google, whose devices have also become more expensive.
Apple appears to be banking on its new Upgrade program, which spreads the cost of a new iPhone over monthly payments, to soften the impact of the price rise on consumers. By allowing customers to finance devices more gradually, the company hopes the higher upfront price will be less noticeable. The move could reshape buying behavior, especially for price‑sensitive markets, and may set a precedent for future pricing adjustments across Apple’s product portfolio as component costs remain volatile.
⚡ Effects Interpreter
🌍World Economylow impact
What this means for you
- ▶Global supply chains might feel a modest tremor as businesses adjust.
- ▶Trade and investment between countries could shift a little if things escalate.
🏙️Local Economymedium impact
What this means for you
- ▶The high street usually mirrors big-picture shifts, just a touch later.
- ▶The pinch, if any, tends to show up first at the till.
🏦Rates & Bankslow impact
What this means for you
- ▶A sudden leap in mortgage costs from this alone would be out of character for lenders.
- ▶A modest drift in borrowing costs is more plausible than a sharp jump.
❤️Healthmedium impact
What this means for you
- ▶A measured response usually serves communities better than alarm.
- ▶It's easy to underestimate how much stories like this weigh on people.
💷Wealthlow impact
What this means for you
- ▶Your pension or investments might sway a touch as markets digest this.
- ▶Nest eggs can wobble briefly before finding their footing again.
🏠Housinglow impact
What this means for you
- ▶Any effect on bricks and mortar is likely to be slow and modest.
- ▶The housing market has a habit of lagging behind the headlines.
🌍 Effects for your country
The U.S.'s central bank rate currently stands at 3.75%, so a global rates move like this could feed through to local borrowing costs. The U.S.'s economy is growing at 2.3% with inflation at 3.2%, the backdrop this story's effects play out against locally. Housing-market effects like this are usually felt most where mortgage rates track the U.S.'s own central bank rate closely. With the U.S.'s unemployment at 4.4%, personal-finance effects like this land on a labour market that is currently fairly stable. Health-system effects are harder to localise from economic indicators alone — the real impact in the U.S. depends more on local healthcare capacity than the figures above.
The UK's central bank rate currently stands at 3.75%, so a global rates move like this could feed through to local borrowing costs. The UK's economy is growing at 0.8% with inflation at 3.2%, the backdrop this story's effects play out against locally. Housing-market effects like this are usually felt most where mortgage rates track the UK's own central bank rate closely. With the UK's unemployment at 5.6%, personal-finance effects like this land on a labour market that is currently fairly stable. Health-system effects are harder to localise from economic indicators alone — the real impact in the UK depends more on local healthcare capacity than the figures above.
France's central bank rate currently stands at 2%, so a global rates move like this could feed through to local borrowing costs. France's economy is growing at 0.9% with inflation at 1.8%, the backdrop this story's effects play out against locally. Housing-market effects like this are usually felt most where mortgage rates track France's own central bank rate closely. With France's unemployment at 7.9%, personal-finance effects like this land on a labour market that is already under strain. Health-system effects are harder to localise from economic indicators alone — the real impact in France depends more on local healthcare capacity than the figures above.
Romania's central bank rate currently stands at 6.5%, so a global rates move like this could feed through to local borrowing costs. Romania's economy is growing at 0.7% with inflation at 7.8%, the backdrop this story's effects play out against locally. Housing-market effects like this are usually felt most where mortgage rates track Romania's own central bank rate closely. With Romania's unemployment at 6%, personal-finance effects like this land on a labour market that is currently fairly stable. Health-system effects are harder to localise from economic indicators alone — the real impact in Romania depends more on local healthcare capacity than the figures above.
The UAE's central bank rate currently stands at 3.65%, so a global rates move like this could feed through to local borrowing costs. The UAE's economy is growing at 3.1% with inflation at 2.5%, the backdrop this story's effects play out against locally. Housing-market effects like this are usually felt most where mortgage rates track the UAE's own central bank rate closely. Health-system effects are harder to localise from economic indicators alone — the real impact in the UAE depends more on local healthcare capacity than the figures above.