Sticker shock: Apple’s new iPhone costs up to $2,000 | Here’s why it’s a “godsend” for some
You’ll need deep pockets if you want to buy the most expensive option on Apple’s iPhone 17 line-up.
Apple’s latest range of iPhones includes a handset that costs a dollar under $2,000 - a price tag that’s significantly higher than the most affordable version of the tech giant’s premium laptop, the MacBook Pro.
Unveiled at Apple’s “Awe Dropping” launch event on September 9, the newest generation of the company’s smartphone - the iPhone 17 - is headed up by the iPhone 17 Pro Max, the line’s deluxe product.
Customers in the U.S. can buy the 17 Pro Max from a starting price of $1,199, but only if they’re content with 256 gigabytes of phone storage space. If they want the highest available amount of memory - a whopping two terabytes - they will have to shell out $1,999.
“A godsend”
While many will balk at such an asking price, say Apple Insider’s William Gallagher and Mike Muerthele, there is a section of the buying public that may well be persuaded to dig deep for the 2TB Pro Max.
For example, Gallagher and Muerthele note, “professional filmmakers who’ve juggled hot-swapping external drives will see that 2TB as a godsend”.
Phone users at the very top of the cost scale also represent a customer base that’s less put off by price rises, says the market analytics firm International Data Corporation (IDC).
“Tends to compress demand at the lower end”
In a note published earlier this month, IDC said uncertain economic conditions - influenced by factors such as Trump’s tariffs - have “tapered demand” in the global smartphone market. However, the note added that customers are deprioritizing spending on smartphones chiefly “in low-end segments”.
“Economic uncertainty tends to compress demand at the lower end of the market, where price sensitivity is highest,” IDC said.
Apple anchoring?
And though most Apple customers are likelier to plump for a less expensive iPhone, their purchasing decisions may be crucially influenced by the existence of a $1,999 option, says Moneywise’s Rudro Chakrabarti.
Chakrabarti points to a sales concept known as ‘anchoring’. This is a strategy whereby a company uses one product’s high price to boost the appearance of affordability of other offerings that represent a significant, if lower, outlay. “It’s a way of nudging customers up the pricing ladder,” Chakrabarti says.
For example, the new iPhone Air 17 starts at $999 - half the price of the 2TB iPhone Pro Max. However, that’s also a $100 hike on the starting price of the Air’s predecessor in the iPhone range, the 16 Plus.
By persuading customers to spend that extra $100 on the Air, Apple can significantly bolster the per-handset average it earns across the iPhone line, said Angelo Zino, of the investment research firm CFRA, in an interview with CNN.
A foldable future
Meanwhile, the cost of the 2TB iPhone 17 Pro Max may also be Apple’s way of preparing its customers for the price set to be slapped on the firm’s first foldable phone. Believed to be due for release next year, the foldable device is “expected to come with a premium price tag of at least $2,000”, says MacRumors’ Tim Hardwick.
The price of the $1,999 iPhone 17 Pro Max “sets the stage for what’s coming next,” says Chakrabarti.
Related stories
Get your game on! Whether you’re into NFL touchdowns, NBA buzzer-beaters, world-class soccer goals, or MLB home runs, our app has it all.
Dive into live coverage, expert insights, breaking news, exclusive videos, and more – plus, stay updated on the latest in current affairs and entertainment. Download now for all-access coverage, right at your fingertips – anytime, anywhere.
Complete your personal details to comment