New iPhone lineup sees price hikes, top model reaches $2,000

Apple has raised the starting price of its top-end iPhone to nearly US$2,000 with the launch of the iPhone 17 Pro Max, which now offers a 2-terabyte storage option at US$2,000.

Since 2017, when the iPhone X introduced the US$1,000 smartphone segment, price increases for Apple’s flagship models have been relatively modest, with the iPhone 17 Pro starting at US$1,100—just US$100 more than the original iPhone X.

Apple’s entry-level iPhone now costs US$800, also up US$100 from 2017.

The new iPhone Air, which replaces the iPhone 16 Plus, has seen a US$100 increase to US$1,000.

Some analysts had expected larger price hikes due to tariffs on Chinese imports, but Apple offset increases by doubling storage on some models.

The company is expected to release its first foldable iPhone next year, with prices likely to match or exceed current foldable models from Samsung and Google, which sell for US$1,800 and above.

🔗 Source: Bloomberg

🧠 Food for thought

Implications, context, and why it matters.

Apple’s pricing strategy reverses decades of mobile phone cost trends

The $2,000 iPhone represents a shift from historical mobile phone pricing patterns, where costs generally decreased over time as technology matured.
Early mobile phones were far more expensive than today’s devices—the Motorola DynaTAC cost $3,995 in 1983, while the MicroTAC was $3,000 in 1989—but prices steadily fell as the technology became mainstream 1.
Even the first iPhone in 2007 was priced at just $600, significantly lower than those early models when adjusted for inflation 1.
Apple’s price stability from the iPhone X ($1,000 in 2017) to the iPhone 17 Pro ($1,099 today) defied typical tech industry trends where prices usually drop as production scales and components become cheaper.
The introduction of the $2,000 iPhone 17 Pro Max with 2TB storage signals Apple’s confidence that its customer base will accept premium pricing that exceeds the costs of early mobile technology.

Premium-only positioning creates different market dynamics than competitors

Apple’s strategy contrasts sharply with Samsung’s multi-tier approach, which spans from budget devices to premium flagships to capture different market segments 2.
Samsung employs competitive pricing, price skimming, and value-based pricing across its Galaxy series, offering everything from entry-level to high-end options 2.
This segmentation difference explains why Apple can push toward $2,000 phones while Samsung recently froze Galaxy S25 prices to build consumer trust amid rising industry costs 3.
Apple’s customer base has been conditioned to expect premium pricing—as CEO Tim Cook noted, people “stretch to get the best they can afford” because the iPhone has become “integral” to their lives.
With 37% of adults owning iPhones according to recent research, Apple has successfully cultivated a loyal customer base willing to pay premium prices for features like battery life, storage capacity, and camera quality 4.