Apple Raises Prices on iPhone 16, iPhone 17, iPhone Air and iPhone 17e by $100

Apple has put $100 on the price of every older iPhone it still sells in the US, removing the cushion that usually makes last year's models the sensible buy. The change arrived alongside the iPhone 18 Pro launch on 9 September. The iPhone 16, iPhone 17e, iPhone 17 and iPhone Air are all more expensive, and the iPhone 17 Pro and 17 Pro Max are no longer on sale.

For years, the pattern around a new iPhone was predictable. Flagships arrived at a similar price, and the outgoing models either held steady or became cheaper. This year that pattern has broken, and it has broken at the budget end of the range.

The New US Price List

• iPhone 17e: $599 to $699. This is now the cheapest way into a new iPhone from Apple.
• iPhone 16: $699 to $799.
• iPhone 17: $799 to $899.
• iPhone Air: $999 to $1,099.

At the top of the range, the new iPhone 18 Pro starts at $1,199, the Pro Max at $1,299 and the folding iPhone Duo at $1,999. So Apple's US line-up now runs from $699 to $1,999. There is no longer an iPhone under $600.

A price rise on a new flagship is routine. A price rise on a two-year-old phone says something about the cost of the parts inside it.

Why Older Models Are Getting Dearer

Raising prices on phones that are already on sale is unusual for Apple. Older models normally act as the value tier, and their cost to build tends to fall over time. The timing points to component costs. Memory and storage chips have been squeezed across the industry this year, as AI data centres absorb a growing share of global supply. That pressure affects phones that have been on the market for a year or more just as much as brand-new ones.

The move also simplifies Apple's line-up in a way that suits its margins. Removing the iPhone 17 Pro and 17 Pro Max means there is no discounted previous-generation Pro to pull buyers away from the iPhone 18 Pro. The gap between the $1,099 iPhone Air and the $1,199 iPhone 18 Pro is now only $100.

Who Is Affected

• Budget buyers: anyone who planned to wait for the iPhone 16 or 17e to get cheaper now faces the opposite. The entry cost has risen by around 14% to 17%, depending on the model.
• Parents and first-time buyers: these groups often choose older models for price alone, and that choice is now $100 more expensive.
• Carriers: networks build instalment plans and trade-in offers around Apple's list prices. Higher starting points will change the monthly figures on contracts.
• Pro holdouts: buyers hoping to pick up an iPhone 17 Pro at a lower price will have to find remaining retail stock or buy refurbished.

What It Means for the Wider Market

Apple's pricing often sets expectations for the premium phone market. If the world's most profitable phone maker is passing on higher component costs, even for existing hardware, rivals facing the same memory costs have more room to do the same. Android makers that compete directly with the iPhone 17 and iPhone 16 on price may also see an opening. That depends on whether they can absorb costs that Apple has chosen not to absorb.

There is a trade-in angle too. Higher prices for new older models tend to support resale values for used iPhones. That makes secondhand and refurbished iPhones more attractive, and it helps people selling their current handset.

What Happens Next

The confirmed changes apply to Apple's US pricing. Buyers in other countries should check their local Apple store rather than assume the same $100 step, because regional prices depend on currency and tax. The next test is the October run-up to the holiday season. Retailers and carriers usually lean hardest on older iPhone models then, and the new list prices give them less room to discount.

The Bottom Line

Apple has turned an iPhone launch into a price rise across the whole range. The new Pro and the foldable get the attention, but the more consequential change for most buyers is that the cheapest new iPhone now costs $699. If memory costs stay high, this may not be the last time an older phone gets more expensive after launch.

Image: Premeditated via Wikimedia Commons, CC BY-SA 4.0