iPhone prices are rising, but not for the reasons you might assume.
**Apple Invites on iPhone**
Bryan M. Wolfe / Digital Trends
The average sales price of iPhones is on the rise, but the reasons are not entirely what one might expect. Recent data from Consumer Intelligence Research Partners (CIRP) indicates that the average price of an iPhone has risen by $18, reaching $971, up from $953 in the fourth quarter of 2024.
While some attribute this increase to tariffs, the influence of economic conditions remains unclear. The current trend towards pricier iPhones is primarily due to Apple's recent discontinuation of the iPhone SE and iPhone 14 models. Analysts assess metrics like the U.S. Weighted Average Retail Price (US-WARP) to estimate the average sale price, as Apple ceased providing these figures publicly at the end of 2018.
The discontinuation of budget-friendly options such as the iPhone SE, replaced by the iPhone 16E, has contributed to the overall rise in iPhone prices. Nevertheless, the increase is not as significant as it could have been, since lower sales of the iPhone 16 Pro and Pro Max have reduced the average price.
Bryan M. Wolfe / Digital Trends
It's essential to recognize that the average sale price fluctuates during generational cycles, but this current increase is occurring earlier than is typical. Given the ongoing economic instability, it signals that more consumers are choosing lower-priced iPhones over the premium models.
A report earlier this year indicated that more individuals purchased used iPhones instead of new ones, mainly due to the lack of attraction towards the iPhone 16 Pro and Pro Max. Consumers were not swayed by the premium features of these models, particularly in light of the delay in advanced Siri functionalities.
With a potential supply chain delay looming for iPhone 17 stock, many fans are preparing to prolong the use of their current devices. While various tech companies are exploring alternative sourcing strategies, Apple may experience a more substantial impact than others due to compounding factors.
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iPhone prices are rising, but not for the reasons you might assume.
A recent report indicates that the average cost of iPhones has risen.