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Goldman Sachs analyst Michael Ng (via Seeking Alpha) believes that the price increase expected from the iPhone 15 Pro models can be justified by the hardware upgrades Apple will be introducing to its creations alongside its ecosystem investments for the devices.
The statement came after a series of predictions and leaks regarding the hike in the prices of the iPhone 15 models, particularly the iPhone 15 Pro and iPhone 15 Pro Max models. To recall, Wedbush analyst Dan Ives, who has a good reputation for divulging the iPhone 14 price hike, said the iPhone 15 hike was expected. Later, Jeff Pu of Hong Kong-based investment firm Haitong International Securities suggested the same, stating the iPhone 15 Pro Max will cost more than the current Pro Max model in the iPhone 14 line. After that, Bloomberg reported that the increase would focus on iPhone 15 Pro and Pro Max. Previous reports claim that the increase could range from $100 to $200, but Ng said it would probably be the former.
Despite this, Ng stressed that the new pricing of the Pro models will bring customers satisfying features, which include the rumored to have an A17 Bionic chip based on TSMC’s 3nm process, a titanium frame, and a periscope lens camera system. Aside from this, the analyst underscored the improvements Apple is making for its device ecosystem.
“In our view, AAPL’s investments in iPhone hardware and across the Apple ecosystem (e.g., software, services) in recent years have provided consumers with additional value and should help warrant the price increases,” Ng wrote in a note to clients.
Ng also shared the belief that the market will warmly embrace the Pro models, resulting in high demand. According to the analyst, it will be possible through the new features the phones will introduce, which would drive “premiumization.”
Ng’s note reflects supply chain analyst Ming-Chi Kuo’s recent report, indicating that Apple has high hopes regarding the high demand for the Pro Max. According to Kuo, the model would account for 35% to 40% of the initial launch shipments of the new series, making it 10% to 20% higher than the iPhone 14 Pro Max shipments during the same period last year. The report points out that Apple is confident in the impact of the periscope camera system on the model, allowing it to zoom 6X optically and reach greater hardware-based zoom. The report underlines that the exclusivity of the feature in the iPhone 15 Pro Max makes it the “selling point” of the model.
