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Wedbush expressed support for the rumored iPhone 15 price hike, noting that the hardware upgrade in the Pro models “warrants” the action.
Ives echoed the previous reports about the iPhone 15 Pro model price increase in a new note to investors, wherein the $100 hike was described as “modest.”
“We believe now is the time to increase iPhone prices modestly, as while Apple will keep the base model prices unchanged the enhanced technology, chips, and battery technology in iPhone 15 Pro/Max warrants this strategic pricing move from Apple,” Wedbush said in a note.
This echoes the same view earlier expressed by Goldman Sachs analyst Michael Ng last week, saying the price increase expected from the iPhone 15 Pro models can be justified by the hardware upgrades alongside Apple’s ecosystem investments.
Despite this increase, Wedbush is confident about the move and the series’ success. Like Counterpoint Research forecasted in August, Wedbush believes promos and discounts from mobile carriers will aid Apple in achieving high sales. According to Counterpoint, Apple could even snatch the top spot for annual shipments globally for the first time ever despite 2023 likely to be “the worst year for global smartphone shipments in ten years.”
Moreover, Wedbush stressed that 25% of the 1.2 billion iPhone users today still haven’t upgraded even after four years or more. As explained, this translates to a huge market of possible iPhone customers in the coming months.
Wedbush is not the first to mention the claim about the hike. To recall, Wedbush’s analyst, Dan Ives, also said months ago that 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.
