Apple Drops Base iPhone: Premium Prices Ahead?

Apple's "Surprise and Shine" event on Wednesday introduced three premium smartphones: the iPhone 18 Pro, Pro Max, and its first foldable device, the iPhone Duo. A notable absence was an entry-level iPhone, leaving many consumers surprised. Industry insiders have anticipated Apple's move towards a premium-only strategy, with budget models like the iPhone 18 now expected in early 2027.

This departure from introducing lower-cost iPhones at their September events marks a significant strategy shift. Apple's decision to delay the base model is attributed to portfolio strategy rather than supply constraints. By splitting launches across fall and spring, Apple aims to maximize attention for each product tier, reduce event clutter, and create more even revenue distribution throughout the year.

The fall season will now concentrate on high-margin premium models, such as the new Pro and Duo devices. Spring launches will feature more affordable options, including the base models, 'e' variants, and the 'Air' series. This approach is designed to extend customer demand cycles and maintain visibility for a broader range of Apple's offerings.

Following the event, older iPhone models saw a $100 price hike. The iPhone 17 is now priced at $899, the iPhone Air at $1,099, and the iPhone 16 at $799. With the ongoing global memory crisis, the upcoming iPhone 18 is anticipated to cost at least as much as the current iPhone 17, potentially more, when it eventually launches in 2027.