Naturally the price for the cheapest model will also be going to up several orders of magnitude more than the cost of materials, labor, and healthy profit margin to account for that as well I'm sure.
So yeah, they may well raise prices, but the cost of Apple's entry-level hardware has decreased in absolute terms over the years, and has decreased substantially if inflation is taken into account. Not to say the margins aren't higher (no idea about that), but it's interesting.