Apple Raises iPhone Air Price by $100 Without Upgrade
Apple's decision to raise the price of its iPhone Air by $100 without upgrading it is being seen as a test of the brand's pricing power. The 256GB model now costs $1,099, up from $999 at launch in September 2025. This move is part of a broader repricing strategy, with Apple also increasing the starting prices of other older iPhone models by $100.
The financial logic behind this decision is to protect Apple's product gross margin, which was 40.1% in the June quarter. With higher costs offsetting improvements in product mix and tariff refunds, a higher selling price can help maintain margins if unit demand holds. However, it's unclear whether the Air is a significant volume contributor or a niche design whose buyers are insensitive to price.
The 256GB Air now sits at a difficult price slot, with its central advantage being an exceptionally thin and light design. Its disadvantages include a year-old chip and one rear camera, making it less appealing than newer models like the iPhone 18 Pro. Apple's decision may encourage some shoppers to trade up, improving product mix, while others may trade down to save $200.