Counterpoint’s Schneemann says Apple is in a position to offset these new costs “better than most other companies” because of the iPhone’s hefty margins. Even if the company is unwilling to eat the cost entirely, a measured price hike could help keep people from skipping new iPhones.

A marginal increase in the cost of new iPhones could sting for people who purchase their new gadgets outright, he adds, but might not bother the many who pay for their phones over time through their wireless carriers. Read more