Apple Raises iPhone Prices by $100 on Older Models, Following Subscription Hikes

iPhone Price Increases

On September 9, Apple announced the iPhone Duo — its first foldable model — and the iPhone 18 Pro, but notably skipped the base iPhone 18. The same day, the company raised prices on all remaining last-generation iPhones still available for purchase. The iPhone 16 jumped from $699 to $799, the iPhone 17E with 256GB of storage went from $599 to $699, the iPhone 17 rose from $799 to $899, and the iPhone Air increased from $999 to $1,099.

Apple TV and Apple One Price Hikes

Just over a week earlier, on August 28, Apple increased the price of its Apple TV streaming service for the fourth time in four years. Monthly subscriptions rose from $12.99 to $14.99, while annual plans increased 20 percent from $99 to $119. The individual Apple One bundle — which includes Apple TV, iCloud+, Music, and Arcade — rose from $19.95 to $21.95 per month. Current subscribers will receive one month's notice before the new rates take effect.

Broader Industry Context

Apple's price increases are part of a broader trend across streaming services. Netflix raised its prices in March, and Peacock announced a price increase in mid-August. Tech companies are also raising hardware prices due to ongoing RAM and component shortages driven by demand for AI data centers. Apple itself had raised Apple Music prices by $1 per month in July, citing licensing costs.

Apple's streaming service launched in 2019 at $4.99 per month. After a steady climb — $6.99 in October 2022, $9.99 in October 2023, $12.99 in August 2025 — the latest hike brings it to $14.99. The company is expected to draw attention to its content lineup, including critically acclaimed series like Severance and The Studio.

Why This Matters

Apple is pushing prices higher across both hardware and services, squeezing consumers who may be considering upgrading or subscribing.
The $100 iPhone price hike on older models effectively raises the entry barrier to the Apple ecosystem, potentially driving some users to third-party devices or delaying upgrades.
The fourth Apple TV price increase in four years reflects the broader streaming industry's struggle to balance content investment with subscriber retention in a competitive market.

Background

Apple's pricing strategy has shifted notably since 2022. The company has raised subscription prices repeatedly for Apple TV, Apple Music, and Apple One, while hardware prices have climbed due to component shortages. The iPhone price increase follows a pattern of incremental bumps across product lines. Apple's September event focused on its new foldable iPhone and high-end Pro models, leaving the base iPhone 18 absent, which may signal a repositioning of its product lineup.

Key Perspectives

Consumers: Face higher costs for both devices and services. Loyal Apple customers may accept the increases due to ecosystem lock-in, but price-sensitive users may reconsider subscriptions or delay phone upgrades. Streaming Competitors: Netflix, Peacock, and others have also raised prices, suggesting a coordinated industry shift as content costs rise. Apple TV's smaller library compared to rivals may make its price less justifiable for some. Critics/Skeptics: Apple's repeated price hikes risk alienating a portion of its user base, especially as economic pressures mount. The absence of a base iPhone 18 also raises questions about whether Apple is abandoning the lower end of the market.

What to Watch

Consumer reaction: Will Apple TV subscriber growth stall or decline after this fourth price increase?
iPhone 18 base model launch: Apple skipped it at the September event; its eventual price and availability will clarify Apple's tier strategy.
Further price increases: Apple has now raised prices for Apple Music, Apple TV, Apple One, and iPhones within two months — other services like iCloud+ or Arcade could follow.

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