Over The Last 14 Years, iPhone Prices Have Gone Up More Than 80%

[MacRumors]

Since its launch in 2007, the price of the iPhone has gone up more than 80% around the world, according to a new study that looked at iPhone prices all over the world and their increase and decrease over the years.

According to the study conducted by Self, since its launch in 2007 and subsequent annual upgrades, the price of iPhones has increased more than 80%, now costing over $400 more on average to buy in countries around the world compared to the original iPhone.

Since its US launch in 2007 and subsequent years in other countries, iPhone prices have increased by 81% across the globe. This means that in 2021, the latest flagship iPhone model costs $437 more to buy in each of the 38 countries it's available in than it used to.

While the price increase comes alongside more advanced technology and increases in production costs, the increase also comes as a result of inflation and Apple having to sometimes increase prices to counter economic growth.

However, many countries have experienced inflation and growth in purchasing power in the years between, and our research shows that Apple have risen iPhone prices 26% higher than local inflation rates. This means that local affordability for a flagship iPhone costs people around the world $154 more in real terms than the first models they could purchase.

As part of its research, Self has created an interactive map that highlights the changes in iPhone prices in real-world terms as a percentage of GDP over the last 14 years in more than 30 countries around the world. According to that map, the United Arab Emirates has witnessed the largest increase in the price of the iPhone, with the latest model costing more than double what it did when it originally launched.

Article Link: Over The Last 14 Years, iPhone Prices Have Gone Up More Than 80%

 

[macar00n]

Well, about every 20 years the purchasing power of $1 is halved. Isn't this just consistent with inflation?

Note: I'm talking normal inflation before the USA printed 30% of all currency in circulation in 1 year

 

[chabig]

Well, about every 20 years the purchasing power of $1 is halved. Isn't this just consistent with inflation?

I suspect you're right. And also our phones today are many times more powerful devices than the original.

 

[cannono]

Which models are they counting? It seems like they vaguely say “flagship” to choose an average, but is that ignoring models like iPhone 8 or SE?

 

[TheGhostWalker]

Adjusting for inflation, the original iPhone would cost $660. Not too far off the $699 for the iPhone 13

 

[Red Oak]

You can buy a new iPhone cheaper today than you could 14 years ago (iPhone SE @ $399, iPhone 11 @ $499).

The ASP is higher today because consumers are choosing more high end models. The cost to get into an iPhone is not “up 80%”

 

[McScooby]

Tell me about it!🤣

 

[adamjackson]

I paid $599 for my first iPhone before tax and waited 3 hours for Cingular's servers to actually activate it. Fun times:

While the price has gone up from $599 to my last iPhone purchased at $1599 for the 1TB Pro Max 13, I don't feel the '80% increase' is unjustified. The iPhone 1 to 13 are incredibly different animals. The iPhone has turned into some people's only computer and you can get an A15 powered iPhone for still much less in the form of the mini so while the starting price was $499 I think for the 4GB model, iPhones now are MUCH more powerful and feature-rich.


Here's the first photo I "shot on iPhone"

 

[mike...]

My iPhone 3G on PAYG (i.e. no subsidy) cost £349 in 2009. My 11 Pro cost £1199. Adjusting for inflation the iPhone 3G cost £476.60, so the 11 Pro is over 2.5x the price.

However, the cheapest iPhone available is much less. I can buy an iPhone SE2 - which is absolutely an amazing phone - for £389 which is about 18% cheaper.

 

[Rychiar]

80%? it was a $600 phone at launch

 

[Kabeyun]

Hey Fathi, do we really need to feed the false narrative that smarphone price trends are particularly an Apple thing? Especially around here, at AppleTrollville.com?

 

[macar00n]

I paid $599 for my first iPhone before tax and waited 3 hours for Cingular's servers to actually activate it. Fun times:

Wow, this really brings me back! What a great photo. Thank you for sharing.

 

[Grimace]

Flimsy math on this headline.

Phone carriers used to subsidize the iPhone cost by $200 or more when you renew your contract - they stopped doing that a few years ago so that subsidy was passed onto the consumer who pays full price.

 

[reubs]

I paid $599 for my first iPhone before tax and waited 3 hours for Cingular's servers to actually activate it. Fun times:

Here's the first photo I "shot on iPhone"

"Cingular" - that was my provider, too. I haven't heard them mentioned in about 15 years.

 

[macar00n]

Hey Fathi, do we really need to feed the false narrative that smarphone price trends are particularly an Apple thing? Especially around here, in AppleTrollville.com?

If MacRumors scares away potential iPhone users, Apple will still make great phones but there'll be more stock for you and me around launch day. I see it as a win

 

[Darth Tulhu]

Remember when Steve Ballmer laughed out loud in derision at the original iPhone's price?

Who's laughing now?

 

[mozumder]

Adjusting for inflation, the original iPhone would cost $660. Not too far off the $699 for the iPhone 13

The original iPhones were all available only under contract (through AT&T/Cingular), so increase the base price with the contract price.

 

[progx]

About to say, wasn't the first iPhone around $500? Depends what model you want. Same with any smartphone manufacturer, there are price points for certain levels of performance... kind of like a PC?

 

[apparatchik]

The headline is complete click-bait, as inflation and exchange rates are also factors, just towards the bottom does it say that accounting for inflation the increase is 26% and not “more than 80%”, the iPhone Mini and entry level models such as the iPhone XR have kept the price mostly constant if not cheaper when taking inflation into account.

Apple has, of course, introduced higher up brackets of premium or Pro Max, etc. models that didn’t existed in the pre-iPhone 6 era.

 

[davythefatboy]

I don't expect such clickbait nonsense from Macrumors. The iPhone gets better every year, Macrumors not so much.

 

[I7guy]

I paid $599 for my first iPhone before tax and waited 3 hours for Cingular's servers to actually activate it. Fun times:

Here's the first photo I "shot on iPhone"

Yep, those were the days. Now with the market flooded, it’s harder to stand out.

First iPhone was $599. iPhone 13 is $699. Doesnt seem like 80% increase to me.

 

[dumastudetto]

An iPhone today is a pocketable supercomputer and a world-leading camera system that is more powerful than most virus-ridden Windows PC's.

It's almost an entirely new product category compared to the earlier years when iPhone was vastly cheaper.

People can almost manage their entire life, including getting all their work done, from their phones. iPhone 13 Pro Max today offers supreme value-for-money in this context.

 

[gank41]

Flimsy math on this headline.

Phone carriers used to subsidize the iPhone cost by $200 or more when you renew your contract - they stopped doing that a few years ago so that subsidy was passed onto the consumer who pays full price.

This. I was going over the article and saw no mention of carrier subsidies and how those aren't offered anymore. Used to be if you stayed with your carrier and signed a 2 year contract, you'd get a cheaper phone. Of course prices have skyrocketed if you compare the cost of subsidized phones to just buying a phone now..

 

[ProfessionalFan]

A lot of products have gone up in cost.

 

[iBluetooth]

This is 4.3% per year increase for the flagship phone.
Not accounting for inflation (which has been low) or technology increase, this looks quite normal to me. Keep in mind that today we use this device most of any other electronic devices.