Apple Set to Keep iPhone 18 Prices Unchanged Despite Rising Costs
Analyst Ming-Chi Kuo says Apple plans to keep iPhone 18 starting prices flat by absorbing higher component costs.
Rumours of a potential price hike for the iPhone 18 series have been swirling as the smartphone’s expected launch in September 2026 approaches. However, Apple analyst Ming-Chi Kuo recently suggested that the tech giant is planning to keep prices flat for entry-level models, absorbing much of the increased component costs.
Kuo highlighted in a post on X that Apple’s strategy aims to maintain starting prices at current levels, a move that could help the company secure a larger market share. “Keeping the entry-level price stable is helpful for marketing,” he noted, emphasizing Apple’s focus on consumer retention despite rising production costs.
The rising expenses are primarily driven by the next-generation A20 chip, likely manufactured using a 2nm process, which is expected to be significantly more expensive. Additionally, memory components like LPDDR RAM and NAND flash have surged in price due to global shortages, as suppliers prioritize AI server demand over smartphones.
Despite these challenges, Apple’s industry leverage allows it to secure essential chips even as prices rise, Kuo explained. The company now negotiates memory pricing quarterly rather than biannually, allowing it to manage fluctuations while potentially absorbing short-term cost increases without passing them to consumers.
The move to maintain pricing comes as Apple balances gross margins with competitive positioning. While the higher component costs will impact profits, analysts believe the company’s strategy could boost overall sales and market penetration, particularly for the entry-level iPhone 18 models.
Apple’s decision reflects a broader trend of tech firms attempting to shield consumers from rising hardware costs, signaling the company’s commitment to accessibility and market dominance as the iPhone 18 series launch approaches later this year.
