Apple's earnings boosting strategy; here's how the subtle price rise works

Apple on Tuesday launched its much-awaited iPhone15 series including iPhone15, iPhone15 Plus, iPhone 15 Pro, iPhone 15 Pro Max. In the United States, you can find the price range of iPhone15 to be the same as that of iPhone14 series when it was launched except the pro max version. The company has increased the price of iPhone15 Pro Max with as much subtlety as possible.

Apple boosted the price by $100 to $1,199. The iPhone14 Pro Max was launched at $1099. This strategy also enables the company to not trigger the sticker shock. As the newly launched iPhone that comes with twice as much storage is already costlier than the previously launched iPhones, the company could argue that the subtle price rise isn't a major one.

Through this move, Apple is actually pushing the customers towards bigger ticket-items that come with more exclusive features, such as better zoom lenses and titanium frames. This is seen as a strategy by Apple in which it makes the inflation-scared customers to spend their money.

As per Bloomberg, even Apple's switch to a USB-C port on the iPhone - an EU-mandated move the company initially opposed - will bring fresh ways to generate revenue. If consumers want their AirPods to have the same connector as the latest iPhones, they'll have to spend $249 for a new pair. If they want to use their old Lightning chargers, they can buy an adapter from Apple for $29.

This comes as Apple is contending in a market that is facing a slump in smartphone sales, giving it less leverage to increase prices. The slump has now forced Apple to keep the lower-end version of the iPhone 15 at $799. Remember, Apple launched iPhone11 Pro in 2019 at $999.

Apple is also aggressively increasing the prices outside the U.S. The iPhone 15 Pro will rise by $50 in Canada, with the Pro Max price going up $200. In India, the Pro Max will climb by about 14%. Apple is also getting more revenue from additional services and accessories.

In China, though the price range of base version of the iPhone15 series is the same, customers will have to pay more for higher storage options. The 512-gigabyte version has risen by 300 Chinese Yuan ($41) in comparison to its equivalent iPhone14 version.

Meanwhile in India, though Apple has kept prices for all versions of the iPhone 15 and iPhone 15 Plus the same, it has hiked the prices of Pro and Pro Max. All the versions of iPhone15 pro max are Rs 10,000 higher than its equivalent iPhone14 pro max models. The pro models are not manufactured locally in India and therefore it would attract high import tax. The increase in price rise also comes as Apple is looking to reinvigorate growth amid a broader slowdown in the smartphone market by targeting premium users in India.

The price rise in both India and China can also be attributed to dollar's appreciation against both the country's currencies. This could also be seen as a way Apple is making up for the fewer dollars it would earn.