Apple’s Revenue Boosting Strategy, Efforts To Wring Money From Consumers

In an effort to get more money from customers without inducing sticker shock, Apple Inc. quietly implemented its long-awaited iPhone price hike.
The tech giant on Tuesday boosted the price of just one iPhone model – the top-end Pro Max, which increased by $100 to $ 1,199, while leaving the other three new versions unchanged. The new phone will come with two times the storage, giving Apple the opportunity to argue that the price increase was justifiable.

A pattern that Apple follows

The action matches the company’s pattern because it needs to be cautious around consumers who are concerned about inflation. Apple isn’t significantly altering its sticker prices, but it is figuring out new methods to get customers to spend more money. To sway customers towards more expensive things, the business outfits its upmarket iPhones with special features like greater zoom lenses and titanium frames.

The switch to USB- C port

The switch to USB-C port was initially rejected by Apple, but now it has brought Apple new ways to generate revenue. Switching to USB-C is an EU-mandated move. If the users of Apple want their Airpods to have the same connector as the latest iPhones. they have to pay $249 for a new pair of airpods. the adapter can be bought for $29.
Some investors prior to the launch thought Apple would raise prices more broadly. according to Evercore ISI analyst Amit Daryani, their shares slipped 1.7% to $176.30.

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However, Apple is battling a dip in the smartphone market as a whole, which limits its ability to raise pricing. According to IDC, global smartphone shipments decreased by over 7% in the most recent quarter, hurting the business’s main revenue stream. Pressure has only increased due to issues in China, where a growing government ban and competition from a cutting-edge new phone from Huawei Technologies Co.

The entry-level Pro model will therefore remain at $999, which is the same price that the iPhone X debuted in 2017. As a result, Apple will maintain the lower-end iPhone 15 at $799.
Despite having 256 GB of storage instead of the previous 128 GB, the entry-level Pro Max will cost over 10% more than the cheapest iPhone 14 Pro Max.

The fact that Apple didn’t raise the tiers of its iPhone 15 Pro Max models with more storage emphasises the incremental nature of this price hike. The price of the 512 GB model is still $1,399, while the 1 TB model is still $1,599. However, despite maintaining the same prices, Apple is still able to generate better margins thanks to the decline in storage costs.

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Price shifts

Apple is escalating price increases outside of the US. In Canada, the price of the iPhone 15 Pro will increase by $50, while the Pro Max will cost $200 more. The Pro Max in India
Some countries, however, are getting a price decrease. In the UK, the iPhone 15 Pro and Pro Max are 100 pounds ($125) cheaper than their predecessors.

In addition to iPhone price adjustments, Apple is making extra money through new services and accessories. For its iCloud online storage service, Apple unveiled two additional storage tiers: a 6-terabyte plan for $30 per month and a 12-terabyte choice for $60 per month. The most expensive iCloud plan costs $10 for 2 terabytes.

The updated AirPods also demonstrate Apple’s more assertive strategy. Instead of making AirPods users buy completely new earphones when the business started to enable wireless charging on the iPhone, it allowed them to purchase new cases that used the same format. This time, it is not supplying a USB-C compatible standalone case.