Apple has raised the prices of four iPhone models by $100 each, an unusual move for devices that are typically discounted, not made more expensive, once newer phones arrive.
The increases, which took effect on September 9, apply to the iPhone 16, iPhone 17, iPhone 17e and iPhone Air. In the United States, the iPhone 16 now starts at $799, the iPhone 17e at $699, the iPhone 17 at $899 and the iPhone Air at $1,099, according to MacRumors and GSMArena. The changes landed the same day Apple unveiled its iPhone 18 Pro lineup.
Apple said in a statement that “while Apple typically lowers the prices of previous-generation iPhones following a new launch, this marks a rare price increase, thanks to the ongoing memory supply crunch.” GSMArena reports the increase applies in every region where the affected models are sold, though Apple has not published a full country-by-country price list.
A “hundred-year flood” in memory chips
The company has pinned the increases on a global shortage of memory and storage chips, driven largely by surging demand for artificial intelligence and data center hardware, which competes with smartphone makers for the same components.
Executive chairman Tim Cook, who stepped down as Apple’s chief executive on September 1 and handed the role to John Ternus, has described the shortage in stark terms in recent investor communications. “This is a hundred-year flood. I’ve never seen anything like it in any area in over 40 years,” Cook said, according to multiple reports including Yahoo Finance. He has said Apple “reluctantly raised prices” because memory costs had outrun the company’s ability to absorb them.
Wire Examiner has previously reported on Ternus taking over as chief executive, with Cook moving into an advisory role as executive chairman rather than leaving the company outright. The pricing decision suggests Cook’s influence over Apple’s supply chain strategy has continued into the new leadership era.
What it means for buyers in Pakistan
Apple has not confirmed how the increase will translate into Pakistani rupee pricing, where iPhones already carry a steep premium once import duties and Pakistan Telecommunication Authority registration taxes are added on top of the retail price. PTA tax alone can add tens of thousands of rupees to a single handset, on top of exchange-rate markups that local retailers typically apply.
A $100 increase at the source is likely to be magnified by the time it reaches store shelves in Karachi, Lahore or Islamabad, since import costs and PTA charges are generally calculated as a percentage of a phone’s dollar value rather than a fixed rupee amount. Pakistani buyers who were waiting for older models like the iPhone 16 or iPhone 17e to become more affordable after the iPhone 18 launch may instead find them costing more than before.
The timing is also notable given Pakistan’s currency has faced its own pressures this year, meaning any dollar-denominated price increase from Apple tends to compound rather than offset local cost pressures for consumers already paying some of the highest effective iPhone prices in the world.
Apple has not said how long the elevated prices will remain in place, and analysts cited by MacRumors and 24/7 Wall St. expect memory chip costs to stay high well into 2027 as AI infrastructure investment continues to absorb global chip supply.
