Apple’s Strategic Move: Keeping iPhone 18 Prices Steady Amid Rising Costs
Apple has long been recognized for its consistent pricing strategy across iPhone releases. However, with the upcoming iPhone 18 lineup, many anticipated a deviation from this pattern due to escalating component costs, surging memory prices, and increased expenses in chip production. Contrary to these expectations, recent analyses suggest that Apple is committed to maintaining stable prices for its consumers.
Renowned Apple supply chain analyst Ming-Chi Kuo recently highlighted that Apple intends to keep the iPhone 18’s starting price unchanged. He emphasized that the company aims to avoid raising prices as much as possible and is focused on keeping the starting price flat, viewing this approach as crucial for effective marketing.
This decision comes at a time when Apple is grappling with multiple financial pressures. The tech giant is facing rising memory prices due to anticipated DRAM shortages in 2026. Apple negotiates memory contracts quarterly, and increases are likely in the second quarter of 2026. Estimates suggest memory costs are already up 10 to 25 percent compared to last year.
Simultaneously, Apple is contending with higher chip production costs. The forthcoming A20 chip is more expensive to produce, primarily because foundries are prioritizing GPU and AI-related demands. TSMC, Apple’s principal chip partner, is experiencing limited capacity as AI customers flood in. To secure sufficient supply, Apple has to pay more.
Kuo believes Apple will absorb much of this pressure. He says Apple plans to secure the chips, absorb the costs, and grab more market share. He also notes that Apple can lock in supply deals that many rivals cannot, even if they are willing to pay higher prices.
This strategy may impact short-term iPhone margins, but Apple is playing the long game. Kuo expects the company to make it back later on the services side, where margins are stronger.
Apple has followed this playbook before. The base iPhone 17 kept its starting price, even as some Pro models became more expensive due to higher storage tiers.
A lot can change before launch, but for now, expectations are clear. Apple wants the iPhone 18 to feel familiar at checkout, even if it costs more behind the scenes.
