Apple May Raise iPhone Prices by $100
Apple is expected to increase the price of its upcoming iPhone 18 Pro by at least $100, bringing the starting price to around $1,200. The hike follows recent price rises across Apple’s hardware lineup and is linked to a global RAM shortage. The company’s upgrade program may cushion the impact for consumers.
The next Apple event in September is likely to bring higher prices for new iPhones, according to Bloomberg analyst Mark Gurman. Gurman says the iPhone 18 Pro will start at roughly $1,200, up from $1,100 for the iPhone 17 Pro that launched last September.
Projected iPhone Price Hike
Gurman’s report also mentions the iPhone 18 Pro Max and Apple’s first foldable phone, possibly named the Ultra, could see similar increases. The price jump is attributed to an AI-driven RAM shortage that has tightened supply for phones, laptops, gaming consoles and other electronics.
| Device | Old Price | New Price | Increase |
|---|---|---|---|
| iPhone 18 Pro | $1,100 | $1,200 | $100 |
| iPhone 17 Pro | $1,100 | $1,200 | $100 |
Apple’s Recent Price Moves
Apple has already raised prices on several products. Two months ago, the company increased the cost of select MacBooks, iPads and HomePods, with some devices climbing 33%. The iMac moved from $1,300 to $1,500, and the MacBook Neo from $600 to $700. MacBook Pro models each rose by $300.
| Product | Previous Price | New Price | Increase |
|---|---|---|---|
| iMac | $1,300 | $1,500 | $200 |
| MacBook Neo | $600 | $700 | $100 |
Last week, Apple also announced layoffs of about 200 workers from its Vision Pro and Siri teams and the shutdown of the Vision Pro gaming group.
Impact on Consumers
If Apple hikes iPhone prices by $100, the move would mirror Samsung’s cost increases for the Galaxy Z Fold 8 and Galaxy Z Flip 8, as well as Google’s price rises for the Pixel 11 and Pixel 11 Pro. Gurman noted that “Apple has room to go higher.”
Apple’s new Upgrade program, which lets customers lease an iPhone, iPad, Mac or Apple Watch at prices starting at $18 a month for an iPhone, could soften the shock for buyers. Longtime tech analyst Paolo Pescatore told CNET that Apple’s large installed base, ecosystem and growing use of trade-ins, financing and monthly payments give it far greater pricing power than most rivals. Pescatore added that the bigger risk is not consumers switching away from Apple but rather deciding to keep their existing iPhone for longer.
He cautioned that loyalty can only go so far and that steeper prices must be matched by significant advancements. “Apple needs to show consumers meaningful advances in AI, cameras, battery life and new form factors,” Pescatore said. “Brand loyalty is incredibly strong, but Apple still needs to keep giving users a compelling reason to move up the range.”
Supply Chain Factors
Many analysts blame component shortages and rising prices for RAM and storage devices on the worldwide build-out of AI infrastructure by major tech companies. While Apple has largely stayed on the sidelines of the AI boom, the company says the global memory chip shortage forced it to raise prices this year.
Apple’s profit margin is reportedly at 27%, which would suggest the company could keep prices as affordable as possible for its millions of loyal customers. A representative for Apple did not immediately respond to a request for comment.
The next Apple event will likely confirm whether the projected price increases materialise, and whether the company can justify them with new features and performance gains.
