Apple (NASDAQ:AAPL) is preparing to raise iPhone prices for the first time in seven years with the launch of the iPhone 17 series on September 9, Morgan Stanley analysts said.
They noted the company will “modestly” increase prices across several models, a move seen as a potential positive 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.
As a result, the starting price for the Pro 256GB model rises to $1,099.
The iPhone 17 Air, described as Apple’s “first form factor change in 5 years,” will feature a super-thin design, Apple’s in-house C1 modem, and a single rear camera to maintain its slim profile. A 1TB Air model is also expected, priced at $1,399.
Morgan Stanley added that the adjustments could lift average selling prices by 5% year-on-year in fiscal 2026, well above the consensus forecast of 1% growth.
“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 feature the Apple Watch Series 11, Ultra 3, SE 3, and AirPods Pro 3.
While investors are keeping an eye on Apple’s AI strategy, Morgan Stanley does not anticipate major announcements on Apple Intelligence next week.
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