Apple Just Made 3 Sneaky iPhone Price Increases


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The long-awaited 5G iPhone is here. Apple (NASDAQ:AAPL) just unveiled four new iPhone models, further expanding its lineup of devices and price points. But hidden within Apple’s announcements were three price increases for new iPhone purchasers.

You might have to pay $30 more than the advertised price

If you want the iPhone 12 or iPhone 12 Mini and you’re not an AT&T (NYSE:T) or Verizon (NYSE:VZ) customer (or willing to become one), you’ll have to pay an extra $30 for your new device. 

The iPhone 12 in blue, green, red, white, and black.

The new iPhone 12. Image source: Apple.

Apple appears to have special price arrangements with AT&T and Verizon, which include heightened trade-in offers for old iPhones and a $30 “instant discount.” T-Mobile (NASDAQ:TMUS) may offer similar discounts through its own retail channels, but it apparently isn’t willing to pay up for a partnership with Apple.

It’s unclear if Apple has similar partnerships with select carriers in countries outside of the U.S. But the pricing in the U.S. suggests the actual retail price for the iPhone 12 and iPhone 12 Mini starts $30 higher than advertised.

The new flagship model is $100 more than last year

Last year, Apple dropped the price of its flagship iPhone model from $749 to $699. The new iPhones start at $699 this year, but you’ll have to settle for the smaller-screen iPhone 12 Mini for that price. The flagship iPhone 12 now starts at $799.

The introduction of the iPhone 12 Mini allows Apple to achieve the benefits of a lower starting price — greater sales — but will likely push more consumers to spend more on their iPhone, upgrading to the flagship model.

And with just a $200 price difference between the iPhone 12 and iPhone 12 Pro, it could push more consumers to upgrade all the way to Apple’s top-end model. Apple’s pricing this year is well designed to maximize its average selling price while still appealing to as broad of a user base as possible.

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