iPhone Price Drops After New Model Launch Are Gradual, Not Immediate

Following the recent launch of the iPhone 18, analysis of past iPhone releases suggests that significant price drops for older models do not occur immediately upon the debut of a new generation. Instead, price erosion happens gradually over time, with the most substantial decreases typically observed within the first month after a new device hits the market.

Data compiled by Zap Group from the last three iPhone launches (15 through 17) indicates that the introduction of a new model does not cause a sharp decline in the price of its predecessor. In some instances, such as with the iPhone 16 Pro after the iPhone 17's release, prices even saw a slight increase of approximately 100 shekels. This suggests that price reductions are more a function of time passing than the launch event itself.

Over the course of a full year, older iPhone models can experience price drops of up to 35% from their original launch price. For consumers looking to purchase the latest iPhone 18, waiting approximately four to six weeks after its launch could result in savings of hundreds of shekels, as launch day prices are generally higher. However, for those considering an older model, the data advises against waiting for a new release solely for a price reduction, as the value proposition of a slightly older, already depreciated model may offer a better balance of cost, performance, and modernity.

The analysis also revealed a significant acceleration in consumer adoption rates for new iPhone generations. The iPhone 17 saw demand reach an index of 210, more than double the rates of the iPhone 15 and 16, marking it as the system's largest launch. Furthermore, the transition from older to newer models has become much faster, with the iPhone 17 achieving this in under three weeks, three times the pace of the iPhone 16. Among Israeli consumers, the Pro Max variant continues to be the most popular, accounting for over half of all iPhone 17 sales.