Apple Should Raise Prices On iPhones

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Apple (NASDAQ: AAPL) is raising prices on its Macs and iPads (as well as the Vision Pro) by between $100 and $500. Demand for these is already mediocre. This decision will make the demand weaker.

Two examples of the increase in the price of the 13-inch MacBook Air from $1,299 from $1,099. The price of the 14-inch MacBook Pro is moving to $1,999 from $1,699. Americans have several popular alternatives. The iPad, for instance, is up against the Microsoft (NASDAQ: MSFT) Surface Pro and the Samsung Galaxy Tab S series.

Apple has raised prices due to a shortage of memory chips and storage. This, in turn, has driven up the price of iPac and Mac.

How weak (or not) are iPad and Mac sales? Start with Mac sales in the US. They account for about 16% of the “PC” market, which means the relative risk to Apple is acceptable. The iPad is entirely different. It has 57% of the tablet market. The threat to Apple’s iPad revenue is therefore substantial if sales fall.

While companies like Samsung and Microsoft face the same chip problems, they have the balance sheets to take a hit to margins as they gamble to pick up market share. If they raise prices as Apple did, the threat to Apple becomes less substantial.

The thing that the stock market has ignored, when Apple’s shares sold off, is that iPhone market share is rising worldwide. Based on shipments tracked by Counterpoint, iPhone global share has risen from 17% in Q1 2024 to 19% in Q1 2025 to 21% in Q1 2026. If that share increase continues to rise with the new AI-powered iPhone, Apple’s bottom line may not be affected at all. And, it may be able to raise the price of its most popular product to offset chip costs.

Will the price increases hurt Apple Mac and iPad sales? Will it matter financially? Probably not. Apple can raise the price of the iPhone without affecting sales

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