Apple Raises Subscription and iPhone Prices Amid Rising Costs
Apple has increased its Apple TV+ subscription price to $14.99/month, marking a fourth hike in four years. Additionally, new iPhones are expected to see like-for-like price increases of up to $500 compared to the iPhone 17 models. These changes come amid rising supply chain costs and broader industry trends where companies such as Netflix, Disney, and Spotify have also raised subscription rates successfully. Apple's recent financial results show revenue growth with a total of $109.42 billion in Q3 FY26, including iPhone sales at $54.3 billion and Services revenue at $30.7 billion. However, the price hikes may pose execution risks for new CEO John Ternus as investors monitor whether higher prices could slow upgrade cycles or affect Apple's valuation multiple of 41x P/E. The broader market appears mixed with SPY down slightly while QQQ remains flat. The company has been incrementally raising subscription rates across its services, starting from $4.99/month in 2019 for Apple TV+ and continuing through a series of increases that culminated at the current rate.
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Topics: iPhone price_hike stock_performance subscription_services