Wall Street analyst Dan Ives says Apple will raise the prices of its upcoming iPhone 15 lineup for the first time since 2017. He shared his insights in a note obtained by Barron’s and discussed them on CNBC.

According to Dan Ives, who accurately predicted international price increases for the iPhone 14, Apple will follow a similar strategy with the iPhone 15. In spite of the fact that the analyst did not specifically mention U.S. prices, his belief in rising Average Selling Prices (ASPs) suggests an impending price adjustment for the new iPhone models, which will be available in September.

Price Hike:

Analysts, including Forbes, expect the price hikes to be more prominent for the premium iPhone 15 Pro models, possibly reaching $200. As of today, the iPhone 14 series ranges in price from $799 for the standard model to $899 for the iPhone 14 Plus, $999 for the iPhone 14 Pro, and $1,099 for the iPhone 14 Pro Max in the US.

In addition, Ives expressed optimism regarding Apple’s Services business segment, commending the company’s strategic vision. Within the next 18 to 24 months, he predicts that Apple’s valuation will increase from $2.85 trillion to $3.5 trillion to $4 trillion.

According to Ives, approximately 250 million iPhones have not been upgraded in the past four years, which represents a potential market opportunity for Apple. There is a possibility that Apple may be able to generate substantial revenue this year if a significant number of these users replace their devices.

Apple is expected to ship between 235 million and 240 million units of the iPhone 15 in 2023, according to Ives. It is estimated that Apple will generate an additional $23.5 billion in revenue even if the average price increases by $100.

Considering the price adjustment and strong sales outlook for Apple’s iPhone 15, the tech giant faces both opportunities and challenges in the highly competitive smartphone market.