CUPERTINO: Apple is expected to raise the prices of its upcoming iPhone 18 series, but the increase may be significantly smaller than earlier speculation suggested, according to a new analyst report.
Earlier this month, Apple Chief Executive Officer Tim Cook acknowledged that price increases for future iPhones had become difficult to avoid due to rising component costs, particularly the shortage of memory (RAM) chips. However, he did not specify how much prices would increase.
The global surge in artificial intelligence (AI) infrastructure, including the rapid expansion of AI data centers, has created strong demand for memory and storage chips. As a result, semiconductor prices have risen, increasing manufacturing costs for smartphone makers, including Apple.
According to a report by J.P. Morgan, Apple is now expected to increase the price of each iPhone 18 model by approximately $50 compared with its predecessor—far less than previous reports that had predicted increases of as much as $200.
If the report proves accurate, the iPhone 18 Pro will start at $1,149, up from the $1,099 launch price of the iPhone 17 Pro. Similarly, the iPhone 18 Pro Max is expected to begin at $1,249, compared with the previous starting price of $1,199.
The report suggests that Apple plans to offset some of the higher production costs by relying more heavily on its own in-house technologies, including the company’s C-series modem, rather than depending on third-party components.
Despite these cost-saving measures, Apple is still expected to face higher manufacturing expenses. According to a Wall Street Journal report, the memory and storage components used in the iPhone 18 Pro could cost around $150 more than those used in the iPhone 17 Pro due to the ongoing semiconductor supply crunch.
Apple remains one of the world’s largest buyers of memory chips, but it is now competing with AI companies that are purchasing massive quantities of the same components to power data centers and advanced computing systems. This increased demand has contributed to rising prices across the semiconductor industry.
In addition to pricing changes, Apple is also expected to alter its product launch strategy for the iPhone 18 lineup.
Reports indicate that the company will unveil the iPhone 18 Pro models alongside Apple’s first foldable iPhone during its traditional September product event.
Meanwhile, the standard iPhone 18 and the iPhone Air 2 are reportedly scheduled for release sometime in early 2027, marking a departure from Apple’s usual practice of launching the entire iPhone lineup at the same time.
Apple has not officially confirmed the pricing, specifications, or launch schedule of the iPhone 18 series. The reported figures remain based on industry analyst estimates and supply chain information until the company makes a formal announcement.
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