It could also mean a substantial decrease.
This is unlikely: this is what the SE is for. As any fule nose, and as the money markets keep on telling us to justify higher inflation, price cuts often tend to set expectations for further price cuts.
What I think is more likely is: bumping the spec but maintaining the price (adjusted for currency fluctuations) and further segmentation with fewer people opting for the extra storage. Apple has to do something to respond to the ever cheaper SD cards that everyone else can use and things like Samsung's upcoming format which will be huge and very fast. Upping the high end also makes Apple look like a leader (though they're only playing catch up with things like water resistance).
Apple's market share is no longer growing and the absolute numbers have started to dip. The 7 is really a litmus test for whether the delayed replacement cycle, that has hit the whole mobile market, will also affect Apple. We won't really know until Apple releases some numbers.
Personally, although Bernstein has a good reputation, I'd expect any rise in the ASP to be more than offset by lower volumes. Won't really matter much for Apple as the profits will still be huge and the share price, based on price to earnings may still look cheap.
@DougS as for innovation, well we're not seeing it from Apple: waterproofing (Sony and Samsung have had it for years); Android now has multiscreen support builtin; two lenses for pics (Huawei). Apple makes great kit and provides a compelling experience but they left innovation behind a few years ago.