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Investing.com -- Apple is expected to raise iPhone prices for the first time in seven years when it unveils the iPhone 17 lineup on September 9, according to Morgan Stanley.
Analysts said the company is set to “modestly” increase prices across multiple models, a shift they see as a potential tailwind for earnings.
“We believe the iPhone 17 will be the first new iPhone introduction in 7 years to feature higher list prices across multiple models,” Morgan Stanley wrote, citing a $100 premium for the new iPhone 17 Air compared with the iPhone 16 Plus and the removal of lower-storage SKUs for the iPhone 17 Pro.
The move effectively raises the Pro’s starting price to $1,099 for the 256GB model.
The iPhone 17 Air, described as Apple’s “first form factor change in 5 years,” features an ultra-thin design, Apple’s in-house C1 modem, and a single rear camera to support its slim build. A new 1TB version of the Air is also expected to launch at $1,399.
Morgan Stanley added that the changes should drive average selling prices 5% higher year over year in fiscal 2026, well ahead of consensus forecasts of 1% growth.
Importantly, the bank does not expect the price hikes to hurt demand. “The price hikes are modest in nature and when amortized over 2–3 years, shouldn’t serve as a material headwind to iPhone demand,” the analysts said.
The September event, dubbed “Awe Dropping,” is also expected to showcase the Apple Watch Series 11, Ultra 3, SE 3, and AirPods Pro 3.
While Apple’s AI strategy remains a focus for investors, Morgan Stanley does not expect major announcements on Apple Intelligence next week.