Apple keeps phone prices the same, even though inflation is biting.

In spite of inflationary pressure that has drove up the cost of many other common things, Apple’s newest range of iPhones will have the same costs as last year’s models, although boasting improved cameras, faster processors, and batteries that last longer.

This pricing decision, which was disclosed on Wednesday during Apple’s first in-person product announcement in three years, came as a bit of a surprise to some people. Many industry experts projected that Apple would ask its most loyal customers to pay up to 15% extra in order to help offset the company’s increased expenses for a variety of components.

The announcement of new iPhone models usually takes place in the week following Labor Day, and Apple has been making a big deal out of it for more than a decade now. The new iPhone 14 models are part of this tradition. On Wednesday, the gathering took place in a theater on the headquarters of the company in Cupertino, California. This theater is named after Steve Jobs, who was a co-founder of the company. After Apple CEO Tim Cook stepped out on stage, the majority of the event consisted of a pre-recorded video presentation that the business had perfected during prior events conducted during the pandemic. Tim Cook was introduced at the beginning of the program.

The majority of new iPhones released by Apple over the past few years have had primarily minor improvements to the cameras and battery life, and this year’s models were not an exception to this rule. The base price of the basic iPhone 14 is going to be $799, while the base price of the deluxe iPhone 14 Pro Max is going to be $1099.

Among the most recent enhancements is a 48-megapixel camera that will be included in the Pro and Pro Max variants. According to the manufacturer, this camera will result in photographs that are particularly clear. Both the Pro and the Pro Max variants of the iPhone 13 have cameras with a resolution of 12 megapixels. Always-on screens are monitors that remain lit even when the device is locked. This functionality has been present for quite some time on many smartphones that are powered by Google’s Android software. This year’s high-end models will also offer always-on displays.

SOS messages will be able to be sent via a new satellite functionality on the iPhone 14 Pro and Pro Max beginning in the month of November. This is a security measure that will allow users to request assistance even when they are in distant places where there is no wireless connectivity.

Every single model of the iPhone 14 will come equipped with a motion sensor that has the ability to identify serious traffic accidents and instantaneously make a connection to the appropriate emergency services.

As a result of inflation remaining at its highest level in forty years, individuals have reduced their spending on a variety of goods that are considered to be recreational. This is undoubtedly one of the factors that has contributed to a recent decrease in sales of smartphones, despite the fact that the iPhone has performed far better than competing Android handsets.

The deteriorating sales outlook prompted the research firm International Data Corp. to forecast a worldwide fall in smartphone shipments of 6.5% in 2022. This is almost double the decline of 3.5% that the company had projected just a few months ago. According to estimates provided by IDC, the average price of a brand-new smartphone is predicted to finish this year approximately 6% higher than it did in 2017. This is despite the anticipated decline in sales.

Despite the fact that Apple currently charges among the highest rates in the business, consumers have shown no signs of slowing their demand for iPhones this year. According to another research organization, Canalys, Apple has reportedly sold 106 million iPhones through the first half of this year, which represents an increase of 8% compared to the same time period in the previous year.

The new product line has been praised by Forrester analyst Thomas Husson for having quicker CPUs, an enhanced design, and “some incremental unique features.”

In trading that took place later in the afternoon, shares of Apple rose by 1%.

During a special event hosted by Apple on September 7, 2022 in Cupertino, California, new Apple Watches were shown for attendees to see. Justin Sullivan/Getty Images

In the meantime, the company’s Apple Watch Series 8 will come equipped with a new temperature sensor that is designed to assist women in retrospectively tracking their ovulation cycles. This feature, along with the crash detection function, will also be making its debut on the iPhone 14. The new Apple Watch, which will be available in stores on September 16, will have a starting price of $399, the same as the one from the previous year.

Apple is releasing a new Watch Ultra model that is designed to be more durable and offers a variety of special features tailored for hikers, scuba divers, and other outdoor enthusiasts in an effort to broaden the appeal of wearable technology. These features include the ability to track a variety of activities, such as distance traveled, pace, and heart rate. The Watch Ultra will be sold at a premium price of $799 when it becomes available in stores on September 23.

Analyst at CCI Insight Leo Gebbie projected that the Ultra will compete with established watch brands for sports, such as Garmin, as well as with some premium Swiss watchmakers whose goods are marketed around extreme activities.

Apple has also revealed its next generation of wireless earbuds, known as the AirPods Pro 2, which will continue to start at a price of $249.

This report was contributed to by AP Business Writer Matt Ott, who was based in Washington, D.C.