Inflation remains high, will the price of Apple iPhone 15 increase?

Apple announced that the special event will be held at 1:00 a.m. Beijing time on September 13, 2023. And the protagonist of this special event is already well-known - the iPhone 15 series.

Although Apple has not yet announced the price or details of this new phone, Wall Street believes that, adjusted for inflation, the price of the base model iPhone will only be slightly higher than the first-generation iPhone.

Will iPhone 15 be more expensive?

According to media reports, the base model of the iPhone 15 will be priced at $799, the same as the base model of the iPhone 14 launched at the end of last year. The first-generation iPhone, launched in June 2007, was priced at $499.

At first glance, this is a significant leap. But considering inflation, this number is much smaller.

In 2007, the purchasing power of $499 is equivalent to $730 today. In fact, the new iPhone - in the end, may actually be only about $70 more expensive than the first-generation iPhone.

In addition, based on inflation-adjusted prices, the new iPhone may be cheaper than the base models of the iPhone 11, 12, 13, and 14. In today's dollars, the prices of all these devices exceed $800.

Of course, this only considers the price of the entry-level iPhone. Apple's iPhone product line has expanded, offering a wide range of high-end versions. For example, according to media reports, the price of the iPhone 15 Pro is expected to be $1099, $100 higher than the iPhone 14 Pro.

Bullish on Apple's stock price

Wedbush analysts said, "If Apple wants to, they can significantly increase the price without losing much."

iPhone sales have declined compared to last year, which may be one of the reasons why Apple did not raise the price of the new iPhone. Some speculate that the performance improvement of the new models is limited.

It is pointed out that Apple has been able to significantly reduce the production cost of the iPhone by manufacturing more of its own chips.

It is stated that the new iPhone is equipped with more advanced cameras, larger storage space, and faster speed, and the price is basically the same as the first-generation iPhone, which may stimulate "(Apple's stock price) to recover and rise in the next 12 to 18 months."

The rating for Apple's stock is set as outperforming the market, with a target price of $230, which means there is still a 25% upside potential for Apple's stock price. His target price is one of the highest on Wall Street; the average target price for Apple tracked by FactSet analysts is $201.78.