Apple Talks Up High-End iPhones in Sign Ultra Model May Be Coming

Apple Chief Executive Officer Tim Cook, speaking on an earnings call that was mostly focused on holiday results, made an off-the-cuff remark that could be quite telling about the company’s future. Cook was fielding a question about whether the iPhone’s rising average sales price was sustainable. After all, a top-of-the-line model that cost $1,150 in 2017 (the iPhone X with 256 gigabytes of storage) now fetches $1,600 (the iPhone 14 Pro Max with 1 terabyte).

His response: The price increase is no problem. In fact, consumers could probably be persuaded to spend more. “I think people are willing to really stretch to get the best they can afford in that category,” Cook said on the call, noting that the iPhone has become “integral” to people’s lives. Consumers now use the device to make payments, control smart-home appliances, manage their health and store banking data, he said. While Cook wouldn’t say if he anticipates further price increases, he made a good argument for why even more upscale iPhones could make sense — especially if they deliver new features. Apple has internally discussed adding a higher-end iPhone to the top of its smartphone lineup.